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Victoria council approves sale of Series 2025A GO bonds after AAA rating; true interest cost ~3.89%
Summary
The Victoria City Council approved a resolution awarding the sale of Series 2025A general obligation capital improvement bonds after S&P Global affirmed a AAA rating; staff reported a final true interest cost of about 3.89% and 11 bids were received.
The Victoria City Council on Feb. 24 approved a resolution awarding the sale of Series 2025A general obligation capital improvement bonds, a financing measure the meeting record identifies with a final par amount reported in the meeting as "$20,000,009.00 5." The council approved the resolution after staff and the city's municipal advisor reported the issue received strong market interest and a triple-A rating from S&P Global.
The nut graf: City staff said the AAA rating and competitive bidding produced a lower borrowing cost than originally estimated, which staff said will reduce the debt-service levy needed to repay the bonds.
Tammy Bridal, municipal advisor with Northland Securities Inc., told the council the city sought and had a AAA rating affirmed by S&P Global for bonds issued to finance fire-station improvements. Bridal said the sale attracted 11 bids and the final true interest cost used to evaluate offers was about 3.89 percent; the low bid carried a true interest cost of about 3.892 percent and a close cover bid was at about 3.898 percent. She said the highest bid among the 11 was about 4 percent and the bonds were structured over a 25-year term.
Bridal said the underwriter included a premium that the city used to reduce the par amount of the issue. Assistant City Manager Tricia Pollock introduced the item and recommended council approval.
Council Member Ivanski moved to adopt the resolution; Council Member Reif seconded. The meeting record shows the council voted "Aye" and the mayor declared the motion carried.
The body of the motion and the meeting transcript record the series as "Series 2025A" and refer to the issue as general obligation capital improvement bonds. Staff recommended and council approved adoption of the resolution presented at the meeting.
Ending: The council moved to the next agenda item after the vote; staff did not provide additional implementation dates for bond closing in the meeting record.
