Public Improvement Bond

Proposed Financing

1. Total amount of revenue bond is $20 Million
2. 8 financing proposals were submitted on 2/10/23
3. Bond will be awarded to the most favorable proposal
4. Closing on or before 3/8/23
5. This is a revenue bond, NOT an ad valorem tax bond

 Projects to be Funded

• Kyoto Gardens Bridge Widening- $8 Million
  • Improvements would include (westbound) a 5-foot sidewalk, 4-foot bike lane, one right turn lane, one through lane and two dedicated left turn lanes and (eastbound) two through/receiving lanes to accommodate two southbound left turn from Military Trail, 1 4-foot bike lane and one 8-foot sidewalk
• Oaks Park Pickleball Courts- $1 Million
  • Improvements would include public play courts, a restroom and parking at Oaks Park
• Burns Road Community Center Renovation- $10 Million
  • Renovation of the circa 1983 community center to meet growing demand for childcare, STEM, Art and Senior programs
  • Total construction cost is estimated at $30 Million with current available funding identified at $20 Million 
  • Bond funding would make up the projected shortfall
• Miscellaneous Transportation Improvements with the Transit Oriented Development District- $1 Million

 Frequently Asked Questions

1. Will this bond raise resident taxes?
   • No. This bond will be repaid using expected annual cash flow of $1.46 Million from payments redirected from retiring bonds, Recreation impact fees and anticipated revenue generated from the expanded facilities
2. What is the term of the loan?
   • The loan term is 20 years and would begin October 2023
3. What is the bond interest rate?
   • The city would have a fixed interest rate of 3.74% with no prepayment penalty if decided to refinance after 9.6 years
4. What is the annual loan payment?
   • The annual payment is $1,466,951

Process

• This item will be presented to City Council for approval at the March 2, 2023 meeting. To view the meeting agenda with backup documentation, visit this link.