City Council approves Lincoln Crossing bond issuance
A Lincoln City Council meeting, that started a week ago, was concluded Tuesday night with the approval of a bond sale that could save residents of the Lincoln Crossing neighborhood millions of dollars.
City Council voted 3-0 to approve the bond issuance. City Councilmen Gabriel Hydrick, Peter Gilbert and Dan Karleskint voted to approve the bond sale. Mayor Stan Nader and City Councilman Paul Joiner were absent. Last week’s meeting was continued, and not adjourned, to avoid calling for a special meeting.
Tuesday night’s meeting was not videotaped and lasted less than 15 minutes. City attorney Kristine Mollenkopf said the meeting had a limited scope.
“Because this is a meeting that was continued, you only need to address the single item,” Mollenkopf said. “If approved, property owners will pay $300 to $500 less on their property tax assessment.”
Only homeowners in Community Facility District 2003-1, the Lincoln Crossing Project, the Lincoln Crossing neighborhood, are affected by the sale of the Special Tax Refunding bonds. The district formed in 2003 to fund public infrastructure. At the time, the city issued $98 million in special tax bonds for the district and then refinanced those bonds in 2007.
The bond issuance had to be approved by the City Council by Tuesday (July 31) to meet a Sept. 1 deadline, according to city Support Services director Steve Ambrose.
According to a staff report by Ambrose, the issuance will benefit from current interest rates. The cost to refinance the bonds is $188,500 and will ultimately save Lincoln Crossing homeowners a total between $20 million and $25 million, according to the report.
Gilbert said Tuesday the cost of refinancing the bonds is “born by the people who receive the benefit.”