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Sale-day report: city issues general obligation promissory notes at sub-3% TIC, yields budgeted interest savings
Summary
The committee received a presentation on bids for the general obligation promissory notes series 2025A; the low bid produced a true interest cost under 3% and generated a premium that reduces near-term interest expenses.
On Sept. 3, 2025, the city accepted bids for its general obligation promissory notes series 2025A; the Finance Committee received the sale-day report at its Sept. 9 meeting. According to staff and the city's financial advisor, the sale attracted nine bids, the low bidder was Huntington Securities and the notes' true interest cost was 2.918% — under 3% — producing an overall net interest savings.
Staff reported that the underwriter offered a premium of nearly $984,000, which will be applied to cover interest in the first two years of the issue and will be incorporated into the 2026 budget. The net present-value savings reported to the committee were $667,000 in interest over the life of the notes. The committee packet included the sale-day report, the advisor's analysis and a Moody's report.
No committee action was required; the presentation was informational. Committee members described the outcome as favorable timing relative to recent market concerns and noted nearby municipal sales that day for context.
