McAlester city councilors passed three measures Tuesday night aimed at refinancing a city bond that a financial adviser says could save millions of dollars in interest.
City councilors took the action during their regular meeting at City Hall, voting to authorize McAlester Mayor Steve Harrison to call a special election on the question on Nov. 6 — which is the same day as the U.S. presidential election.
The measure asks the city voters to approve indebtedness not to exceed $40 million.
Of that amount, $26,200,000 would be used to refinance the McAlester Public Work Authority’s 1999A Refunding and Improvement Revenue Bonds, also known as Capital Improvement Bonds, in the amount of $26,200,000 for the purpose of achieving debt service savings.
The remaining $13,800,000 could be used to fund street improvements, along with related infrastructure improvements.
An election is needed because the McAlester City Charter requires that any indebtedness of more than $500,000 must be approved by a vote of the people.
Before voting on the measure, city councilors heard from Jon Wolff, vice president of Municipal Finance Services in Edmond.
He said if McAlester voters approve the measure, no new sales tax would be required, “because you can use the existing sales tax.”
“It’s not going to increase the taxes in any way?” asked Ward 4 Councilor Robert Karr.
“No,” Wolff said, because the proposal is to take existing debt and refinance it.
See more in the print edition of the News-Capital