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Burnsville awards $68.61M in general obligation bonds for city hall and police project at lower-than-expected rate
Summary
The council approved the sale award for general obligation capital improvement bonds, series 2025A, to fund the combined city hall and police station project. Staff said the city received eight bids with a low of 3.96% and a high of 4.08% and reduced par amount to $68,610,000 after premium.
The Burnsville City Council approved a resolution awarding the sale of general obligation capital improvement bonds, series 2025A, to fund expansion and renovation of the combined city hall and police station.
Municipal advisor Dan Tintner told the council that Ehlers solicited bids on behalf of the city and that eight proposals were received. "It was considered really a strong test of the market with the low bid being at 3.96% and the high bid being at 4.08%," Tintner said. He noted that the city’s presale estimate had been about 4.39% and that received rates were below that estimate and below the figures in the Financial Management Plan (FMP).
Why it matters: the bonds will fund a major capital project — the combined city hall and police facility — and the market result reduced the city’s borrowing cost compared with prior estimates. Tintner said the city also received a premium on the bonds and, consistent with past practice, used the premium to reduce the par amount; the resolution presented and adopted reflected a revised aggregate principal amount of $68,610,000.
Council action: after the presentation the council moved and adopted the resolution "awarding the sale of general obligation capital improvement bonds series 2025A in the original aggregate principal amount of $68,610,000," fixing form and specifications and directing execution and delivery.
Next steps: staff and municipal advisors said a second tranche of bonds would likely be issued in late summer or fall 2026 as bond proceeds are spent and the project needs additional funding.
