BY NICK DIAMANTIDES
Staff Writer
During its January 20 meeting, the Signal Hill City Council directed city staff to present an update in March on the bond market so that the council and Signal Hill Redevelopment Agency can decide whether to issue bonds and begin the construction bidding process for the Signal Hill Police Department (SHPD) headquarters.
City staff has estimated the project cost at $15.7 million, and the Redevelopment Agency will have to issue bonds to finance it. The problem is that tax-exempt municipal bond interest rates are currently very high, some as high as 7.9 percent. City officials are hoping the interest rates will drop in the next few weeks.
In a written report provided to the council, the city’s financial consultant, Suzanne Harrell, said, “While it is still early in the year, the next few weeks should provide better information on where interest rates are headed for bonds such as those contemplated by the Agency.” Harrell noted, however, that there are indications that the interest rates will be dropping slightly soon. “I will provide you periodic updates as further information on sales of tax allocation bonds becomes available,” she said.
Deputy City Manager Charlie Honeycutt told the council that delaying the bond issue until March or soon thereafter would not necessarily delay the progress of the new SHPD headquarters. “The construction plans and specifications for the police station building are complete,” he said. “The project will be ready for bid advertisement as early as February.” He noted that the contractor selection process usually takes about 90 days to complete.
The next meeting of the Signal Hill City Council is February 3 at 7pm in the council chambers of Signal Hill City Hall.
