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Council approves sale of 2025 general‑obligation and sales‑tax revenue bonds; ratings affirmed AA
Summary
The council approved resolutions awarding sale of the city's 2025 A (general obligation) and 2025 B (sales tax revenue) bonds. Both issues received a single bid from Robert W. Baird; S&P affirmed the city’s AA long‑term rating with a stable outlook.
The Marshall City Council approved two resolutions awarding the sale of its 2025 bond issues: a 10‑year general obligation issue (2025 A) and a 20‑year sales tax revenue issue (2025 B). Both issues received a single bid from Robert W. Baird & Co., and S&P Global affirmed the city's long‑term rating at AA with a stable outlook.
EJ Moberg, Director of Administrative Services, said the 2025 A bonds will finance equipment (including an aerial truck), a street reconstruction project and a surface water project. Financial adviser Michaela Hewitt of Baker Tilly said the 2025 A bid from Robert W. Baird priced at about 3.774% and produced premium that allowed the city to reduce the par amount to $2,590,000 (down from the $2,805,000 originally planned). “It was for 3.774,” Michaela said when summarizing the bid result.
For the 2025 B sales‑tax revenue bonds tied to the aquatic center, EJ said the sale received a single bid at 4.336%. Using premium to capitalize some interest and reduce par, the city reduced the par value to $19,285,000 (previously planned near $20,100,000) and an effective interest cost of about 4.344% was reported by staff.
Michaela and EJ told the council the market had been volatile in recent days and that single‑bid situations can occur; they described the bid outcomes as favorable in the current market. Michaela also summarized S&P’s review, which affirmed an AA rating and stable outlook based on the city’s reserves, balanced budget for fiscal year 2025 and other financial policies.
Motion and vote: The council approved the resolution awarding the sale of the general obligation bonds (motion by Council member Jim, seconded by John) and approved the resolution awarding the sale of the sales tax revenue bonds (motion by C, seconded by Jim). Both motions passed.
Next steps: Staff will complete closing and apply premium as described, including capitalizing interest for the sales‑tax bonds where authorized by the referendum and legislative approvals. The bonds support street projects, equipment replacement and the aquatic center construction.
