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Webster Groves sells $17.195 million in general obligation bonds at a premium; council approves bond authorization ordinance
Summary
City finance director reported the sale of $17,195,000 in general obligation bonds for 'Destination WG' with 11 bids, a premium of $762,000 and Raymond James as the winning bidder. The council adopted the ordinance authorizing the bonds.
The Webster Groves City Council approved Bill 9,275, authorizing the issuance and sale of general obligation bonds, series 2025, after Finance Director Gregory Donovan reported that the city sold $17,195,000 in bonds earlier that day at a premium.
Donovan told the council the sale drew 11 bids; Raymond James submitted the most competitive bid and picked up the issue. He said the sale produced a premium of $762,000 in addition to the principal amount and that the market spread on quoted yields was about 4–5 percent.
“we received an extra $762,000 for the sale of the bonds,” Donovan said, adding that the proceeds will be used for projects related to the bonds authorized by city voters. He said the funding plan does not require a tax increase to cover principal and interest payments and that the sale structure provides flexibility to invest proceeds in the near term without triggering federal arbitrage requirements.
Donovan also described an early-call structure and said many of the early maturities carry roughly a 5 percent rate until the call date. He said the city may issue the remaining authorized balance in the coming years depending on spending needs.
Action and vote: Council member Alexander called for the third and final reading of Bill 9,275; the council voted to adopt the ordinance authorizing the bonds. Recorded votes included Council member Smith — yes; Council member Hixson Shepherd — yes; Council member Hasselmeier — yes; Mayor Arnold — yes; Council member Bliss — yes; Council member Franklin — yes. The ordinance passed unanimously by the members recorded.
The ordinance prescribes bond form and sale details and authorizes related documents and actions; the finance office will complete closing procedures and record the sale.
Provenance: statements by Finance Director Gregory Donovan reporting the sale and the council’s vote to adopt Bill 9,275 are recorded in the meeting transcript.
