Knox Mayor Dennis Estok alerted city council members of some changes to the general obligation bond process when they met last Thursday.
Estok issued an updated timetable for the general obligation bonds that the city will be using to finance the purchase of a pumper truck. He informed members about a suggestion made by the city’s financial advisors that impacted the timeline.
Estok stated, “We’re going to be doing that a lot earlier than what was projected because of interest rates and all that. Umbaugh recommended that we start the process now.”
Aside from interest rates, there was one other reason that officials with Umbaugh recommended starting the process earlier. The mayor explained that if the city acquires the money sooner, they can take advantage of a reduced a pre-pay price that the fire-apparatus manufacturer Toyne included in their original bid.
Mayor Estok noted that the new timetable indicates that the bond sale will take place on June 14th and they should close by June 28th.
As a reminder, the bond issuance will be for a total of $650,000 to cover the cost of the fire truck, any add-ons or potential change orders that may be necessary down the line and Umbaugh’s $50,000 bond counsel charge.