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San Angelo City Council held a special meeting to consider approving seeking bids for $2 million in short term financing. The term of the notes would be one year. City Council approved the matter by a 7-0 vote. Not one Council member asked about the costs of issuance.
This is concerning as the City paid back a similar $2 million short term note on August 15th. The vast majority of those funds were sold as shelter renovation financing.
That note cost nearly $100,000 in issuance fees and interest. City staff said not one invoice related to shelter renovations was paid from those borrowings. So how did the city utilize those funds prior to paying them back? It is a mystery.
Update 9-18-23: City staff will ask City Council for approval to issue a series of short term bonds in tomorrow's Council meeting. That discussion will be worth watching.
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