Decatur Fire Department broke ground on its second fire station last month. On Monday night, the Decatur Council approved the sale of certificates of obligation that will fund the construction of the station and other future projects. AUSTIN JACKSON | WCMESSENGER
The Decatur City Council approved the sale of $32.5 million in bonds for a list of public safety and infrastructure improvements Monday night.
Hilltop Securities, Frost Bank and Raymond James were the underwriters on the bond sale, which will cover the construction of Decatur Fire Station No. 2, rehab of the existing station, and the first phase of the city’s water and wastewater overhaul. The bond package covers land acquisition for future treatment plants and the design and engineering of plant expansions, a new wastewater treatment plant on the north side of the city and the gravity sewer lines to support that new wastewater facility.
Sentry Management, Inc. President Murphy Davis Jr said the sale and true interest costs reflected their market projection from back in September.
“Hilltop Securities was the lead underwriter. We also added Raymond James and Frost to the group to get better coverage and a better rate,” Davis Jr said. “It went well this morning. The bond market was off a little bit, which meant rates were higher. But on our pre-marketing call from Friday, there was no change in the rates. It was a successful sale.”
Davis explained that the bond sale carried a true interest cost of 4.71, which was close to the 4.69 percent rate projected in September.
The council approved the ordinance authorizing the debt issuance unanimously at the meeting. Council members Melinda Reeves and Darlene Hilton were not in attendance.
The new fire station, located at 222 S. Old Reunion Road, will improve response times for residents on the “other side” of U.S. 81/287, down South Farm Road 51. The facility carries a guaranteed maximum cost of $15.9 million and is scheduled for completion in November 2026. Construction on the city’s second fire station began in November.
“This is a big project that covers a lot of key areas: health, welfare and public safety for our citizens,” Mara said of the projects funded by the bond.
In September, Mara anticipated the annual payment on the tax notes at about $2.2 million, with its first payment occurring in 2027. He said impact fees are expected to cover roughly half that annual amount, leaving an estimated $1.2 million obligation on the current tax base.
The $32.5 million issuance is the first piece of larger utility infrastructure project for the city. Earlier this year, engineers with Kimley Horn mapped out a $242 million plan to meet Decatur’s future water and wastewater demand, divided through a series of debt issuances.
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