City approves $40.7M bond issue for police station, sewer expansion
With no discussion and a unanimous vote, the Nicholasville City Commission approved a major bond issue to take advantage of low interest rates.
Monday’s vote was for the second reading of the $40.695 million issue for a number of city projects, including the police department presently under construction, an expansion at the sewer treatment plant, a new fire truck and refinancing existing debt.
The package includes nearly $7 million for the police department, almost $20 million for the waste water treatment expansion, $720,000 for a fire truck and to refinance more than $13 million in debt.
Nicholasville Mayor Pete Sutherland said previously the interest rates offered by the bond issue were well below what the city was expecting from other financing options. The ultimate interest rate, he said, should be between 1.57 percent and 1.92 percent.
The bond issue is expected to save the city $1.5 million in interest on its $12 million Kentucky Infrastructure Authority debt and consolidate it with a 2011 bond issue, he said.
The bonds are expected to be sold later this month and should take 45 days to finalize, bond officials said.
The police department will be about 22,000 square feet when completed in 2021. It will include room for the full department, as well as a public meeting room to be used by the city commission, planning commission and others. City commissioners began discussing how to appoint the room Monday evening, including what type of furniture to use for the commission tables.
The expansion to the wastewater plant will increase its daily capacity from 4.1 million gallons to 7.1 million. Construction was expected to take about 18 months.
Nicholasville Fire Chief Mark Case said the fire truck likely would not be ordered until 2021, but the department wanted to secure the funding for it now.