Council Authorizes Issuance of General Obligations Bonds
Published:
<< Back to NewsFri 8/14/20
On November 5, 2019, the Town of Addison had five bond propositions approved by voters totaling $70,620,000. At its August 11 meeting, the City Council authorized the sale of General Obligation Bonds to generate $15,135,000 in project funds from the following authorizations:
- $14,030,000 from the authorized $22,300,000 from Proposition A for street improvements. This would fund the design costs associated with the Keller Springs Road and Airport Parkway reconstruction projects, to which contracts have been awarded by Council. The funds also include proceeds for the construction phase of Keller Springs Road.
- $365,000 of the authorized $6,723,000 from Proposition C for parks and recreation improvements and facilities. This would fund the design of improvements to the Addison Athletic Club, including locker room reconfiguration, gymnasium and track improvements, and pool modernization.
- $140,000 from the authorized $7,395,000 from Proposition D for improvements to existing municipal buildings. This would fund the design of the HVAC and roof at the Addison Athletic Club as well as the boiler replacement, for which the Council has approved a reimbursement resolution and the project is completed.
- $600,000 from the authorized $600,000 from Proposition E for traffic control systems for which a contract has been awarded by Council.
Because of Addison's outstanding bond ratings and current market conditions, the bonds sold at a premium with a true interest cost of 1.41 percent. As a result of the premium, the Town was able to reduce the amount of debt issued, but still generate the amount of money needed for the projects.
At the August 11 meeting, Council also approved the issuance of 2020 General Obligation Refunding Bonds, Taxable Series. Estimates provided at the June 9 Council meeting were that the refunding would create $795,088, or 6.50%, in Net Present Value savings over the remaining life of the debt. Since the Town was able to secure a true interest cost of 1.11%, the sale will actually result in a savings of just over $2,000,000.
