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Olmsted County approves $20.21 million general-obligation bond to fund solid-waste and capital projects
Summary
The Olmsted County Board approved a resolution authorizing the sale of General Obligation Bonds, Series 2025A, to fund solid-waste projects, equipment and other capital improvements. County staff said the issue carried the county's AAA rating and a true interest cost near 3.71 percent.
The Olmsted County Board of Commissioners on Oct. 7 approved a resolution authorizing the issuance and sale of General Obligation Bonds, Series 2025A, to fund solid-waste projects, a materials-recovery facility, waste-to-energy facility renovations, Graham Park improvements and assorted county equipment.
County Chief Financial Officer Alfredo Roman Cattero and municipal advisor George Eilerson of Northland Securities presented the sale to the board. Eilerson told commissioners the county’s credit rating was affirmed at AAA and that the sale drew 15 bids, with Raymond James providing the winning bid. He said the sale produced a true interest cost in the range discussed during the presentation and that, after accounting for bond premium, the effective par amount and interest changed slightly from the pre-sale numbers.
The bond issue was described by staff as structured to match debt terms with useful life: solid-waste improvements were financed over a 20-year term, while other projects were assigned shorter terms based on asset life. Staff said solid-waste revenues will repay the portion for solid-waste projects, and the remainder will be repaid from a debt-service levy.
Eilerson summarized the market results: 15 bids were received, Raymond James submitted the low bid, and the bid tab showed true interest costs clustered around 3.68–3.69 percent before final premium adjustments. He said bond premium from the sale—reported in the presentation as about $1,172,000—was used to reduce the par amount the county must borrow.
Board members asked for clarification about amounts printed in the resolution versus amounts after the sale. Staff explained that the original par amount authorized to take to market differed from the final par amount after applying the premium and that the award should reflect the adjusted figures the county received from the competitive sale. A motion to approve the resolution authorizing the bond sale (as moved on the record at $20,210,000) was seconded and carried by voice vote.
The sale closing date was listed in the presentation as Oct. 15, with final maturity in 2046 and a non-call period until Feb. 1, 2033. Eilerson noted the county’s AAA rating and said maintaining that rating reduces interest costs over the life of the bonds.
Notes from the record: staff repeatedly distinguished the pre-sale par amount from the post-sale par amount after premium was applied; commissioners asked for and received that clarification on the record.
