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Avon plans $9.55 million in note issuances to fund road improvements, refinance 2025 debt
Summary
Finance Director Steve Presley said the City will issue up to $3 million in notes for SR 254/83 intersection improvements and $6.55 million to retire 2025 bond anticipation notes, totaling $9.55 million to remain under the $10 million bank-qualified threshold for lower interest rates.
Finance Director Steve Presley told Council the City proposes two note issuances: up to $3,000,000 to complete State Routes 254 and 83 intersection improvements, supplemented by grant funds, and up to $6,550,000 to retire outstanding 2025 bond anticipation notes. Presley said the City will pay down $1,775,000 of the $8.325 million currently outstanding, leaving $6.55 million in the 2026 issuance. Combined with the earlier $3 million, the total issuance would be $9.55 million—kept under $10 million to preserve bank-qualified status and potentially lower interest costs.
Presley said once the projects are complete the temporary notes will be converted to permanent bonds. Council asked no substantive questions during the work session about the financing structure. The ordinances were presented for review and scheduled for readings on the regular Council calendar.
