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Council authorizes up to $3.06 million in general-obligation notes to finance 2025 street and water projects
Summary
Council approved a parameters resolution allowing issuance of up to $3,060,000 in general‑obligation promissory notes (Series 2025A) for the city's 2025 street program and water utility work; sale targeted for mid‑May subject to market timing.
The Common Council on April 15 authorized the issuance of general‑obligation promissory notes not to exceed $3,060,000 to finance street projects and water utility work included in the city’s 2025 capital budget. The council approved a parameters resolution that gives staff and the city's municipal advisor flexibility on sale timing in volatile markets.
Phil Costin of Ellers & Associates, the city’s municipal advisor, told council members the parameters approach permits the city to complete the sale on a non‑council night if market conditions are more favorable. Costin said the transaction is planned as a competitive 10‑year note partly payable by the water utility and partly by the general levy, and that the city’s Moody’s rating is A1. He described a maximum true interest cost included in the parameters at 3.92% and said the plan was to award the sale around May 15, 2025, with closing May 29, though dates could shift.
City Finance Director Lehi Sullivan Murray confirmed the underlying street contracts had already been approved and that the council was now approving financing for those projects. The council approved the parameters and authorized staff to proceed; the resolution and roll call recorded all aye votes.
Votes at a glance: the motion to authorize issuance and establish parameters for sale of not to exceed $3,060,000 in general‑obligation promissory notes, Series 2025A, passed on a roll call with all present voting Aye.
Ending: Staff and the municipal advisor will finalize the official statement, seek Moody’s rating confirmation and proceed with a competitive sale pending market conditions and timing.
