Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Edina awards $8.785 million general‑obligation bond sale to Hilltop Securities
Summary
The council approved the sale of $8,785,000 in general‑obligation bonds to fund Vernon Avenue/Highway 100 and aquatic center projects; 11 bids produced a true interest cost of about 3.67% and Moody’s/S&P affirmed the city's high ratings.
The Edina City Council on Sept. 2 approved resolution 2025‑75 authorizing issuance and awarding the sale of $8,785,000 in general‑obligation bonds (series 2025B) to Hilltop Securities of Dallas, Texas, to finance a portion of the Vernon Avenue/Highway 100 project and aquatic center improvements.
Nick Anhut, senior municipal advisor with Ehlers, told council the city opened 11 bids and received competitive pricing; Hilltop’s winning bid produced an indicated interest rate of about 3.64% and a calculated true interest cost of about 3.67% after issuance adjustments. Anhut said the bonds received strong market interest, with the top eight bidders clustered closely.
Anhut said the finalized principal amount of $8,785,000 reflects internal set‑asides of fund balance to reduce borrowing and inclusion of some reoffering premium. He compared the financing favorably to earlier presale estimates and noted differences with earlier bond sales this summer that had longer repayment terms. The council recorded no substantive changes to the underlying projects; public hearings had been held earlier in June and July on the abatement and street reconstruction plan.
The sale carries standard closing requirements; bond counsel Dorsey & Whitney revised the draft resolution to incorporate the final bid pricing. The closing is scheduled for Sept. 25 pending council action. Council approved the resolution by voice vote.
Finance director Pa Thao and municipal advisor Anhut said Moody’s and S&P had assigned high ratings to the transaction, which Ehlers and staff said contributed to broad market interest and favorable pricing. Council discussed the bidding process and asked about typical underwriter behavior; Anhut described the municipal bond market dynamics and named firms that bid on the transaction.
