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Gulf Shores authorizes $23 million general obligation warrant for transportation and capital projects
Summary
Council approved Ordinance No. 2219 authorizing a $23,000,000 General Obligation Warrant (Series 2026-D) to SouthState Bank at a fixed 4.20% interest rate to finance multiple roadway, bridge and capital projects; maturity set for Dec. 15, 2045.
The Gulf Shores City Council voted June 8 to authorize a $23,000,000 General Obligation Warrant, Series 2026-D, to be executed with SouthState Bank to finance transportation improvements and capital projects. The ordinance establishes a special Series 2026-D Warrant Fund and specifies a fixed interest rate of 4.20% with principal payments annually and interest semiannually, and a final maturity of Dec. 15, 2045.
City documents list intended uses for proceeds including multiple roadway projects for Waterway Village West, Highway 59, Canal Road, East 2nd Street, completion of a pedestrian connector bridge spanning the Intracoastal Waterway, retirement of an outstanding line of credit, and payment of issuance costs. The ordinance also affirms that the city's post-issuance indebtedness remains within constitutional limits and documents federal tax-exemption covenants required for tax-exempt municipal borrowing.
Mayor Robert Craft and councilmembers discussed the ordinance on June 8 and approved it by unanimous roll-call vote. The ordinance anticipates delivery of the warrant about June 12, 2026, and directs city finance officers to request a single disbursement of net proceeds to carry out the authorized purposes.
The ordinance includes standard federal tax covenants (arbitrage and private-use restrictions) and requires the city to provide audited financial statements to the bank upon request. Council recorded unanimous approval; the ordinance becomes effective upon adoption.
