Shelter Financing Costs Better Spent on Spay/Neuter

San Angelo City Council approved a $2 million note to finance urgent updates to the Animal Shelter.  Staff did not present the cost of issuing the notes or the interest that will be paid on that borrowing.  No member of City Council asked about those costs.

A public information request showed the cost to issue the notes is $55,000 and interest paid to investors will be $32,000.  There was nearly an additional $5,000 in rounding.  These items total $92,000 and are an expense solely due to borrowing the money vs. using the city's ample cash reserves.

Staff noted that Animal Services would have to reduce services further during a four to six month construction period.  Council discussed the funds would only update the existing facility and not result in any strategic changes in shelter operation.

$92,000 would fund a healthy low cost spay/neuter program.  It's disappointing that city leadership and elected officials didn't raise the cost of borrowing and how those funds could instead be used to help citizens spay/neuter their pets.  

Update 3-16-23:  The City Council background packet indicates the tax note amount increased to $2,560,000 which will likely drive up both the issuance cost and interest expense.  The notes mature on September 30, 2023.  This could be an error in light of the same document showing principal repayment of $1,995,000.   Hopefully Council will clear up the discrepancy in their upcoming meeting.