EDMOND — City officials are considering a new $14.27 million bond issue that would fund Interstate 35 and Covell Road capital improvements and other projects.
The bonds would be issued in the capital projects fund, a special sales tax passed by voters in 2000 for capital improvement projects. The tax is ¾-cent for an indefinite period of time.
The debt would be for 10 years, Assistant City Manager Steve Commons told members of the Capital Projects and Financing Task Force this week.
Members of the city's financing committee approved the new bond deal at its last meeting. Their recommendation will be made to the city council within the next 30 to 60 days, said Ross VanderHamm, city finance director and city clerk.
The bond issue would not require a vote of the people because it would not raise sales or property taxes in Edmond.
In addition to the road improvements at Covell and I-35 and other unimproved sections of Covell, the money would go toward road work at 33rd Street and Broadway and future years of the implementation of the Intelligent Traffic System.
The estimated cost for Covell roadway construction is $10 million.
Low interest rates and an upswing in sales tax collections are reasons for considering the bond issue.
Sales tax collections for the first eight months of the fiscal year have shown a 17 percent growth. City officials project the fiscal year will end with a 12 percent growth. They had calculated a 3 percent growth in this year's budget.
City officials decided to borrow the money for 10 years because the life of the road improvements is estimated at a decade.
The city council delayed borrowing $40 million for capital improvements in 2007 when the sales tax collection took a downturn.
“We think $14 million is a safe number,” Commons said. “If we continue to grow 5 percent, we may do another bond issue in four or five years.”