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Roseville approves $1.79 million equipment certificates to buy electric fire engine
Summary
The Roseville City Council on July 21 approved issuing and selling $1,790,000 in general obligation equipment certificates to fund the purchase of an electric fire engine after a competitive sale that produced seven bidders and a low true interest cost of 3.1136 percent.
The Roseville City Council unanimously approved the sale of general obligation equipment certificates totaling $1,790,000 on July 21 to finance the city’s purchase of an electric fire engine. Finance Director Michelle Petrick introduced municipal advisor Jason Arzvold of Ehlers, who said the city’s AAA rating from Standard & Poor’s helped attract seven competitive bidders on the equipment certificates. The winning bid came from TD Securities USA LLC with a true interest cost of 3.1136 percent; the low bidder’s premium allowed the face amount to be reduced from an earlier figure to a net issuance of $1,790,000. Councilmember Schroeder moved to adopt the resolution to issue and sell the certificates; Councilmember Bauer seconded. The motion passed unanimously. Council discussion praised the competitive sale and highlighted the environmental benefits of purchasing an electric fire engine. The sale preserves Roseville’s AAA credit profile and was presented as an opportunity to acquire a long-term asset while minimizing borrowing costs.
