Council Approves Bonds for Construction Projects
Sep 16, 2026 08:35AM ● By Shaunna Boyd
Logo courtesy of the City of Dixon
DIXON, CA (MPG) - At the Sept. 1 meeting, the Dixon City Council considered approval of a lease revenue bond issuance request. The bonds would generate funding to cover the expansion of the police department building as well as the construction of the new fire station.
The bond structure would use city properties as collateral to issue and sell enough bonds to generate $10 million in proceeds for the two construction projects.
The bonds will create a general fund obligation of $635,083 to be repaid each year, which will be included in the annual budget. The interest rate is approximately 4.85%, and the bonds will reach final maturity in 2057 after 30 years.
Assistant City Manager Kate Zawadzki explained that the $10 million in funding will be held in a trustee account, and it can be invested to create additional earnings to offset the interest costs. The city will draw from the account as needed to reimburse costs on the two projects.
During the public hearing, a resident asked whether the funds would be earmarked only for those projects and not shifted to other purposes. Zawadzki confirmed that the funds will be restricted to the two construction projects.
The council voted unanimously to approve the bond issuance. The funds should be available to the city by early October.
The council also continued a discussion on the proposed construction of a private Catholic school within the downtown mixed-use zoning area.
The project applicant is the Valley of the Sacred Heart Academy, which currently uses classrooms at St. Peter’s Catholic Church. They have outgrown the space there and are requesting a zoning amendment to allow construction of a new school on a 0.517-acre vacant lot at the northeast corner of East A Street and North Second Street.
The project would require a zoning text amendment for a conditional allowance of a private school within the downtown mixed-use area.
Council reviewed this project in April but continued the item and asked staff to look at considerations like compatibility with existing school start times at the nearby Anderson Elementary School and John Knight Middle School, pedestrian safety concerns, and whether a school use would negatively impact downtown parking or the ability of local businesses to obtain liquor licenses.
The applicant agreed to stagger their start and end times to ensure they won’t add traffic congestion to the school drop off and pick up times in the area. They also addressed the pedestrian safety concerns with new language requiring crossing guards to ensure pedestrian safety. While the city cannot legally restrict anyone’s right to object to liquor license applications, the applicant said they don’t plan to make any such objections. They also believe the planned onsite parking should ensure staff do not take up street parking downtown.
During public comments, various community members and people affiliated with the school spoke in support of the project, stating that the building will be a beautiful addition to downtown while providing an excellent educational opportunity. They also stressed the necessity of constructing the school at that location, since it is near the Catholic Church where students are required to attend daily mass.
Some residents spoke in opposition to the project, stating that a school is not compatible with the downtown zoning, and it would only benefit a small group and not the community as a whole. The Downtown Dixon Business Association (DDBA) is also opposed to the project in that location, stating that the amount of space downtown is limited, and uses should be targeted to entertainment and dining to create a vibrant downtown.
Vice Mayor Jim Ernest said everyone agrees the Valley of the Sacred Heart Academy offers a highly regarded educational program, and the new school would be asset to the community. But he said, “My concern is the location. The property is in our downtown commercial area. We have a vision for our downtown. Our zoning is intended to create a vibrant downtown core. We want restaurants, retail, entertainment, commercial activity. A school isn’t consistent with our downtown vision.”
Ernest suggested the possibility of looking into a land swap with a city-owned property that could provide a better location and maintain the downtown property for the uses already consistent with the designated zoning. He said, “The goal here is to find a win-win: To support Sacred Heart and protect our long-term vision for a vibrant, economically successful downtown.”
Councilmember Kevin Johnson said he’s heard from a lot of residents about this project, and the community is pretty evenly split on this issue. He said, “There’s a long-term view of what we want to see in our downtown and what we want it to be.” While he said the design and intention of this project are “wonderful,” he said the council has to give downtown businesses the best chance to thrive.
Councilmember Thom Bogue agreed that he likes the design and supports the school, but a lot of time and effort went into planning for the downtown corridor, and they dedicated it as mixed-use for a reason.
Councilmember Don Hendershot still had concerns about how a school at that location would impact local businesses.
Councilmember Johnson suggested they table this item to look into Ernest’s land swap idea. Johnson said he wants to see this project happen, and another location could actually give the school more outside space for the students as well as room to grow if their program expands in the future.
Mayor Steven Bird agreed that the location is the biggest concern and said the council has the responsibility to consider all possible options before making a decision.
The council voted unanimously to continue the item at a future meeting and directed staff to look into other location options and discuss possibilities with the applicant.
The next meeting of the Dixon City Council was scheduled for Sept. 15.















