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Apple Valley council sets sale date for $32.45 million 2025 general obligation bond issue
Summary
The council approved a resolution setting the competitive sale schedule and municipal advisory agreement for the city's General Obligation Bonds Series 2025A, which will fund park referendum projects and facility capital improvements.
The Apple Valley City Council on Thursday adopted a resolution setting the sale timetable for a $32,450,000 general obligation bond issue, Series 2025A, and approved a municipal advisory services agreement with Northland Securities.
The action starts the formal process to sell bonds that will fund projects authorized in a 2023 park referendum and portions of the city's facilities capital improvement program, city staff said.
City finance staff member Ron told the council the issue would include about $29.4 million of referendum-authorized park bonds and roughly $3.0 million for facility capital improvements and planning for the city's next phase of its Central Maintenance Facility. He said earlier issuances used part of the referendum authority and that the 2025 issue would be one of several planned over the next two to three years to complete authorized projects.
Ron said the referendum authorized $73,250,000 for parks work; in 2024 the city issued about $16.3 million of that authority and the 2025 issue would use $29.4 million of the balance. Referenced park projects included Kelly Park, redevelopment of Redwood Park, replacement of the community pool (the Redwood Pool alternate), Splash Valley improvements, community center and senior center improvements, and Hays Youth Baseball and Softball Complex, he said. The Hays Arena project was mentioned as previously completed and paid for.
On facilities, Ron said the city has two facilities CIP authorizations. Under the most recent authority, about $9.9 million was identified for the Police Operations Garage; remaining authority would be used for the Central Maintenance Facility redesign, fire stations and other projects. He told council the bond calendar would include rating calls the week of June 30 or July 7, receipt of rating reports around July 16, City Council action awarding the sale on July 24, and expected proceeds in August 2025.
Council Member Melander moved to adopt the resolution providing for a competitive negotiated sale of the General Obligation Bonds, Series 2025A and to approve the municipal advisory services agreement with Northland Securities; Council Member Bergman seconded. The council voiced approval; the motions passed.
The city will return to council on July 24 to consider awarding the sale and will provide final bond documents and ratings reports before that action.
Funding amounts and sequencing were presented by staff and are dependent on project expenditures and market timing; Ron noted remaining issuance authority and potential further sales in 2026 and later years as projects progress.
