Lake Elmo council authorizes $2.185 million bond sale for 2025 street program

Lake Elmo — The City Council voted to approve the competitive sale of $2,185,000 in general obligation improvement bonds to pay for the 2025 street improvement project and authorized a municipal services agreement with Northland Securities Inc.

Tammy Amdahl of Northland Public Finance told the council, “Tonight is the start of the process. This resolution calls for the sale of the bonds. The actual sale of the bonds would happen on July 15.” The sale will be evaluated on bids received July 15 and the city plans to seek a bond rating; Moody’s current rating was referenced as “Aa1.”

Why it matters: The bond proceeds will fund street projects that staff say cost less than originally estimated, allowing the city to reduce the planned issuance compared with earlier projections. The bonds are to be paid from a property tax levy and special assessments; they are not utility or enterprise revenue bonds.

Council debate focused on the size of the issuance and the city’s debt load. Council member Jagadish said he supported selling bonds for the street program but opposed the full $2,185,000 amount. “I’m not opposed to the sale of the bonds. I’m not supporting the $2,185,000,” Jagadish said, citing the city’s existing debt and recent levies that were intended to reduce debt pressure. Jagadish urged using levy proceeds to lower the amount borrowed and reduce long‑term debt service paid by residents.

Finance director Clarissa (last name not specified in the record) told the council the levied street maintenance funds are already committed to 2025 maintenance work such as chip seals, crack fill and a mill‑and‑overlay project, and thus are not available to reduce the bond issuance for the improvement project.

Action and next steps: The council approved the bond resolution by voice vote (recorded as passing 3–1). The municipal services agreement with Northland Securities — a $31,388.50 services contract to advise the sale — was separately approved; council called the question and the motion passed.

The resolution calls for the competitive, negotiated sale with an estimated true interest cost of 4.18% for planning purposes; the actual rate will depend on market conditions at sale. Staff said they will return with the rating results and bid evaluation after the July 15 sale.

Votes at a glance: Resolution 2025‑045 (competitive sale of $2,185,000 GO improvement bonds, series 2025A) — outcome: approved, recorded as 3 yes, 1 no. Municipal services agreement with Northland Securities Inc. — outcome: approved (voice vote, no nays recorded).

Speakers who appeared in the record on this item included Tammy Amdahl (Northland Public Finance, advisor); Clarissa (Finance Director, Lake Elmo); Council member Jagadish (Lake Elmo City Council); and Mayor Caden Head.

The council will return after the July 15 sale with bid results and the bond rating update.