City Council authorizes $6.74M bond sale for street and utility reconstruction

The North St. Paul City Council convened on March 18, 2025, to discuss significant financial actions, including the proposed sale of $6.74 million in general obligation street reconstruction utility bonds. Michaela Hote from Baker Tilly presented the request for authorization to issue these bonds, which are intended to fund various infrastructure improvements, including street reconstruction, water utility, sanitary sewer, and storm sewer projects.

The bonds are set to be sold on April 15, 2025, with a 20-year term and an expected interest rate of approximately 4.18%. The council previously held a public hearing on the street reconstruction plan on March 4, and there is a 30-day reverse referendum period following that meeting. A rating call with S&P, which currently rates the city’s bonds at AA, is scheduled for March 26.

During the discussion, council members inquired about the bond structure, specifically regarding the possibility of early repayment. Hote clarified that while the bonds have a 20-year term, they include a call date, typically set at 10 years, allowing the city to refinance or pay off the bonds if more favorable interest rates become available.

The council is expected to award the bonds during their meeting on the evening of April 15, following the competitive sale. This financial move aims to enhance the city's infrastructure while being supported by utility revenues and general levy funds.