City Council voted unanimously (6-0) Tuesday to approve the issuance of its Series 2024 certificates of obligation for $22,025,000.  The purpose of issuing bonds each year, as stated by Bedford’s Director of Finance Brady Olsen, who addressed the Council with the details of the proposed bond, is to fund Capital Improvement Projects for the next year.

This year’s bond, as stated by the Council agenda, is intended to fund the retrofit of the old YMCA for the City’s new Senior Center, remodeling of the fire stations, public safety facilities and streets and sewer improvements.

According to the agenda, the updated breakdown of the funding will be applied toward:

• In-car and portable radios for public safety and public works ($2,000,000)
• Additional costs for the Central Fire Station ($5,500,000)
• Remodeling of Fire Station 2 and 3 ($4,000,000)
• Additional costs associated with the Senior Center ($2,030,377)
• Street projects including Brown Trail ($4,854,500)
• Utility projects along Parkwood and Gregory Addition ($2,305,000)

According to Olsen, as he addressed the Council, seven bids for the bond were received and as a result of the City’s upgraded Standard and Poor’s (S&P) rating of AA+, “we got a 3.78% true interest cost.”  The City, he said, had been planning for a rate of about 4.5%.

In comparison, Olsen stated home mortgage rates are at about 7% and new car loans range from 5% to 6%.  The upgraded rating, he added, is the second highest S&P ranks.