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Wheaton staff outline $25M–$35M bond scenarios; $30M issuance would carry about $2.1M annual debt service
Summary
City staff presented combined project estimates of about $31 million and three bond scenarios ($25M, $30M, $35M) with annual debt service of roughly $1.8M, $2.1M and $2.5M; staff recommended a $30M issuance to fund Fire Station 39 and Police Station Priorities 1 and 2.
Assistant City Manager William Kolschowsky presented the City’s preliminary financing analysis for the combined Fire Station 39 replacement and Police Station renovations. Staff estimated total project costs at about $31 million (including contingencies and escalation) and said the City’s financial advisor modeled three bond issuances: $25 million, $30 million and $35 million. Kolschowsky reported the modeled annual debt service for those issuances would be roughly $1.8 million, $2.1 million and $2.5 million, respectively, assuming level debt service payments.
Director of Finance Robert Lehnhardt told the Council it was premature to predict a specific credit rating impact but that any issuance would fit within the City’s existing debt policy limit of 5% of equalized assessed value (EAV) and that the City currently has a relatively small amount of outstanding debt. Staff recommended a $30 million issuance to fund the recommended project scope; the Council asked staff to provide additional analysis during future Planning Session budget discussions.
