Work begins on 2018 GO Bond projects

March 13, 2018

City Council to determine list of projects for first tranche

City staff began working this week toward implementing projects approved by voters during a March 6 General Obligation Bond Election.

The $16.5 million bond package is focused on street repairs, storm drainage improvements, public safety equipment and multiple parks and recreation projects such as a new fence for Kiddie Park, construction of a green space project downtown and the continued renovation of the Price Fields Complex.

“On Monday, we held our first meeting in conjunction with the bond proposals approved by voters in the G.O. Bond election,” said acting City Manager Mike Bailey. “Several of the directors met to discuss possible projects to recommend to the City Council for funding with the first tranche of bonds issued, as well as how to best distribute the workload and the particulars of the bond issuance.”

Bailey said the City Council will determine which projects will be funded with each tranche, the first of which is expected to be issued by the end of June.

“One thing that is somewhat different about this bond than in the past is that we will be able to secure a large amount of money — $10.25 million — in the first tranche,” Bailey said. “That means we will be able to allocate a large portion of this funding and move relatively quickly to begin purchasing the equipment and constructing the projects chosen for completion with the issuance of the first tranche.”

The second tranche, $3.35 million, is set for issuance in the fall of this year, while the third, $3.14 million, is scheduled for fall of 2019 and the last, $1.2 million, will likely be issued in the fall of 2020.

GO bonds are secured by ad valorem (or property) taxes and are one of only two ways a municipality may levy ad valorem tax revenues. The City of Bartlesville has a self-imposed 15-mil cap for its G.O. bond debt service. Bonds are issued over time in a series, or “tranche,” as the old bonds mature. The City of Bartlesville’s GO bonds are typically held by banks, and interest rates are determined by the interest rate environment and the municipality’s bond rating at the time.

The City of Bartlesville’s current Standard & Poor’s rating stands at AA-.

“Our rating is very favorable,” Bailey said. “It’s one of the best in the state for municipalities.”

Look for updates on these projects in upcoming editions of City Beat, the City of Bartlesville’s free weekly e-newsletter. Subscribe today!