The resolution is a notice for an intent to issue a combination tax and revenue certificates of obligation, director of finance April Duvall said. This is not an issuance of debt at this time, she added.
The details
The next step will be publishing a notice of intent to issue the bonds, which requires a 45-day public notice period. During this time, qualified voters may submit a valid petition, which must be signed by at least 5% of registered voters, to require an election before issuance, according to city documents.
Duvall said the city plans to issue up to $48.7 million in bonds through 2040 to help pay for infrastructure needs.
In a nutshell
The maximum principal amount for the certificate is $8.15 million. The work would include:
- Street improvements for pavement reconstruction, curbs, gutters and drainage improvements
- Sidewalk improvements focusing on enhanced pedestrian connectivity and safety
- Remodel of the Parks and Streets Shop to improve operational efficiency and working conditions for town staff
The street projects account for $7 million of the $8.15 million during that timeframe, according to city documents.
The breakdown
As part of the bond, city staff will look to make improvements and keep the debt service tax rate target at $0.105 per $100 in valuation, according to city documents. If passed during the Aug. 25 town council meeting, the interest and sinking tax rate would go from $0.099427 to $0.1031, a difference of $0.003673, according to city documents.
That tax level would remain the same with forecasted future issuances in 2027, 2030, 2032, 2035, 2038 and 2040. The town expects bonds to be between $5.5 million and $7 million going forward, according to the presentation.
