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Newton reports successful $5.535 million general obligation bond sale; S&P affirms AA- rating
Summary
City finance staff reported the sale of $5,535,000 in 20-year general obligation bonds (Series 2025A) to Baird at a true interest cost of about 3.8196%. Standard & Poor’s affirmed the city’s AA- rating. Commissioners voted to ratify the sale and adopt related ordinance and resolution.
The Newton City Commission on an evening session received and ratified the sale of $5,535,000 in 20-year general obligation bonds (Series 2025A) and approved related ordinance and resolution after a report from the city’s municipal advisor.
Jessica Oliphant of Baker Tilly Municipal Advisors told commissioners the sale on Sept. 4 drew a competitive bid from a syndicate led by Baird of Milwaukee with a true interest cost of about 3.8196 percent. She said the par amount was reduced from an initial $5,805,000 “due to the receipt of a premium.”
The bonds will finance five special‑benefit‑district projects and four city‑at‑large projects, according to Oliphant. She also reported that Standard & Poor’s assigned and affirmed the city’s general‑obligation rating as AA‑, citing the city’s “robust economic development, strong reserves, robust budgeting practices, a low debt burden, sophisticated financial management and robust financial reports produced in compliance with generally accepted accounting principles.”
Commissioners voted to receive the report and to award the Series 2025A bonds to the winning bidder, then approved Ordinance No. 5177-25 to adopt the bond issuance and Resolution G-1365 to ratify the sale. All votes on those motions were taken by voice vote and carried with the ayes; no opposed votes were recorded in the public meeting.
Mayor Rich Dennett and city staff thanked the finance department, bond counsel Gilmore & Bell and the municipal advisors for their work coordinating the sale. Donna (finance director) and staff were singled out in remarks of appreciation after the vote.
The city did not provide a detailed, named roll‑call tally in the meeting record; the minutes show voice votes and motion carries for each item.
Copies of the ordinance and resolution are part of the meeting packet. Bond counsel for the transaction was Gilmore & Bell and municipal advisory services were provided by Baker Tilly Municipal Advisors.
