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Marion council approves two bond purchase agreements for 2025 financing
Summary
The council approved bond purchase agreements for two 2025 issues — general obligation corporate purpose bonds (Series 2025A) and taxable general obligation annual appropriation urban renewal bonds (Series 2025B) — and heard a market overview from DA Davidson describing favorable municipal market movement and the city's AA1 credit reaffirmation.
The Marion City Council approved two separate bond purchase agreements on Tuesday: the general obligation corporate purpose bonds, series 2025A (resolution 32384), and taxable general obligation annual appropriation urban renewal bonds, series 2025B (resolution 32385).
Michael Maloney, partner at municipal advisor D.A. Davidson, presented the two transactions to the council. He described the municipal market as having recent favorable movement in interest rates, noted the city's reaffirmed AA1 credit rating by Moody’s for the 2025A issue, and said the 2025A issue had a roughly 20-year structure with a 12-year average life and an approximate coupon of 4.14% in the presenation. For the 2025B issue — which is taxable and is rated lower than the city’s general credit because of its annual-appropriation and TIF-related nature — Maloney said the average life was under 10 years and the true interest cost was about 5.6%.
Maloney and the council praised staff for planning and for Moody’s engagement during the credit review. The council approved the purchase agreements by voice vote; no public comments were made on those items.
Staff and the bond team said the final loan documents will be presented at a subsequent meeting and the planned closing is scheduled for June 3.
