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Waite Park council approves resolution authorizing up to $10 million in CIP bonds for municipal facility work
Summary
The Waite Park City Council voted March 17 to adopt the city's Capital Improvement Plan for 2025–2029 and to authorize issuance of general obligation capital improvement plan bonds in an amount not to exceed $10 million for a municipal facilities project that combines a public safety facility and city hall expansion.
The Waite Park City Council on March 17 adopted the city's Capital Improvement Plan for 2025–2029 and approved a resolution authorizing the issuance of general obligation capital improvement plan (CIP) bonds in an amount not to exceed $10,000,000 to finance a municipal facilities project that includes expansion of the public safety facility and city hall.
Tammy Umdahl of Northland Securities, the city's financial advisor for the sale, told the council the total not-to-exceed amount discussed in the presentation for the entire financing package is $29,000,000; of that, the portion subject to the public hearing and council action for CIP financing is limited to $10,000,000. Umdahl said the estimated project cost for the CIP portion is $9,000,000 and the remainder of the financing package is a sales-tax-backed portion that is not subject to the hearing.
Umdahl described the bonds as a single general obligation bond series (Series 2025A) that will include both the sales-tax portion and the CIP portion. The sales-tax portion is pledged to sales tax revenue, but because the bonds are general obligation, the city's full faith and credit would be available if pledged revenues were insufficient. The council was told the bonds are proposed to be structured so the combined debt-service levy would not increase from what was certified for pay 2025. An estimated market interest rate mentioned during the presentation was about 4.18 percent, though the final rate will depend on market conditions at sale.
Umdahl also explained technical financing items, including capitalized interest and the planned schedule: the city intends to price the bonds around May 5 and to consider award of the sale at the council's May 5 meeting, subject to the 30-day reverse-refund referendum period that follows the March action. She recommended seeking a rating from S&P; the city last issued bonds in 2018 and S&P had previously affirmed the rating then.
After public hearing procedures were closed, a councilmember moved and the council voted to adopt the resolution authorizing issuance of the general obligation capital improvement plan bonds in an amount not to exceed $10,000,000 and to adopt the Waite Park capital improvement plan for 2025–2029. The motion passed.
Votes at a glance: the council recorded unanimous voice votes to approve the meeting agenda, to approve the consent agenda (minutes listed in the consent packet), to adopt the CIP resolution authorizing issuance of CIP bonds not to exceed $10,000,000, and to approve payment of the bills. The meeting adjourned by voice vote.
No detailed roll-call vote totals were provided in the public record of the meeting; the record shows the motions carried following standard "All in favor? Aye. Opposed?" voice procedures.
