Council awards two sales-tax bond issues to fund community health and wellness center

The Bloomington City Council on July 14 unanimously approved two bond resolutions to sell sales-tax–backed bonds and general obligation sales-tax bonds to fund the city’s community health and wellness center.

Why it matters: The bond proceeds will supply the project financing voters approved in a prior sales-tax referendum and allow the city to move forward with the center’s construction and debt service already planned in the city budget.

The council’s finance director, CFO Laurie Economy Schroeder, opened the presentation by saying, “Today was a great day in the market for us,” and described competitive results from a July 14 bond sale. Schroeder told the council the city issued a taxable sales tax revenue bond (Series 2025A) and a general obligation sales tax revenue bond (Series 2025B). She said the 2025A offering was brought to market for roughly $65 million and that Jefferies LLC submitted the winning bid; the 2025B issuance of about $30.8 million received a winning bid from Robert W. Baird. Schroeder reported a true interest cost of about 4.21% on the sales-tax revenue bonds and about 3.92% on the GO bonds; she also said proceeds are expected to be available August 13.

Municipal advisor Elizabeth Bergman of Baker Tilly described investor outreach and said the city’s official statement was distributed widely to the investor community, noting roughly 500 unique email contacts reviewed the offering. Council member D’Alessandro moved adoption of the resolutions; both motions passed 7–0.

Details and context: Schroeder said Standard & Poor’s assigned a double-A rating to the sales-tax revenue bonds and a triple-A rating to the city’s GO sale-tax bonds, and that the city had a stable outlook from the rating agency. The council heard that $8 million of accumulated sales tax was being used to “buy down” the bonds and that debt service for the issues will be paid from the sales tax revenues pledged for the project. Schroeder said the sale will fully fund the bond portion of the $100 million project that voters approved in the sales-tax referendum.

Council action (formal): Two resolutions were adopted by roll call voice votes: resolution authorizing issuance of sales tax revenue bonds, series 2025A (motioned by Council member D’Alessandro; second by Council member Mua); and resolution authorizing issuance of general obligation sales tax revenue bonds, series 2025B (motioned by Council member D’Alessandro; second by Council member Mua). Both outcomes: approved, vote tally 7–0.

Discussion vs. decision: Council members asked about market interest and outreach; staff answered and then moved to formal adoption. No amendments or further conditions were recorded in the meeting.

What’s next: City staff will receive bond proceeds on August 13 and proceed with the project budget and construction steps already in place.

Sources: City presentation to Bloomington City Council, July 14, 2025; comments by CFO Laurie Economy Schroeder and municipal advisor Elizabeth Bergman.