The $8 million in bonds have been sold and the Orange city staff will prepare a list of what streets to repair plus a timeline on other projects.
James Gilley with U.S. Capital Advisors told the Orange City Council Tuesday the bond sale drew six bidders, indicating the city has a strong budget and financial history. The Baker Group of Oklahoma bought the bonds at a 2.8 percent interest rate.
The general obligation bonds will be repaid from the city’s annual budget during 20 years. Taxpayers will not see an increase in the tax rate because of the bonds. City officials have said the city has paid back bonds from 20 years ago used to build the police station. The $8 million can be repaid with the same amount of dollars as the previous bond payments.
Gilley said the city has a Standard and Poor rating of AA-, a good rating for a small city. Mayor Larry Spears Jr. said the bond sale shows the city is “doing a great job” with finances and audits.
The council in December agreed to spend $3.1 million of the bond money to repair streets. Also, $3 million will be used to fill in the pool at the old natatorium and renovate the building to become a recreation center.
Other projects will be building a pavilion at the Boat Ramp off Simmons Drive, buying a new pumper truck for the fire department, buying a generator for the future city hall on 16th Street, and spending $200,000 for improvements for the appearance of 16th Street.
Interim City Manager Kelvin Knauf said the city staff is working on a list of the streets to rebuild plus a timeline for completing the other projects.
-Margaret Toal, KOGT-