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Moorhead approves $28.1 million in short- and long-term general obligation bonds
Summary
The Moorhead City Council voted to approve two 2025 general obligation bond resolutions—one short-term temporary issue tied to the mall redevelopment and one longer-term improvement and wastewater refunding bond—after a presentation by the citymunicipal advisor.
The Moorhead City Council voted unanimously to approve two bond resolutions on separate motions after a presentation from the city—s municipal advisor.
Municipal advisor Chris Hogan of Baker Tilly told the council the city will sell $11,560,000 in general obligation temporary improvement bonds, series 2025A, and $16,575,000 in general obligation improvement and wastewater refunding bonds, series 2025B. The council approved each issue separately by voice vote.
Hogan said the 2025A bonds are short-term, three-year temporary financing intended to fund improvements related to the city—s mall redevelopment area and to provide capitalized interest and issuance costs while the city pursues a later long-term financing. He said the city structured the 2025B bonds with a 20-year repayment schedule for assessment-supported projects and included a refunding of portions of the city—s outstanding 2014A wastewater revenue bonds (maturities Nov. 1, 2026—2034) to realize debt-service relief in the first five years.
Hogan identified the pledged revenue sources: special assessments ($3,960,198 pledged for a portion of the work), tax levies for the remainder of assessment-supported project costs, and the wastewater treatment fund for the refunding portion. He said the 2025A bonds include an optional call provision after one year to allow flexibility for an early long-term financing; the 2025B bonds are callable after 10 years, a typical feature for a 20-year structure. Hogan also noted that the refunding was in part prompted by the departure of a major local taxpayer (Anheuser-Busch), and that lower interest rates allowed the city to restructure debt without increasing overall interest cost.
Hogan said Moody—s rating conference is scheduled for Aug. 6, the rating would be delivered about a week later, the bonds will sell Aug. 25 and proceeds are expected to be received Sept. 18.
Discussion: Council members raised no questions after Hogan—s presentation and both bond motions were approved by roll call of voices (ayes, no opposed). No numeric roll-call tally was recorded in the meeting minutes provided.
Next steps: staff and the municipal advisor will monitor market conditions and update the council shortly before the sale.
