Council approves $5 million certificates of obligation to fund Bay City public-safety building; competitive sale awarded to Baker Group

Bay City Council approved an ordinance authorizing the issuance and sale of up to $5 million in tax and revenue certificates of obligation to finance the city’s public-safety building project.

James Gilly of US Capital Advisors presented the results of the city’s competitive bond sale process and said the sale attracted multiple underwriters. "We advertised the sale of the city's bonds by distributing those offering documents," Gilly said, and bidders returned four bids by the advertised deadline. The winning bid came from the Baker Group with an initial true interest cost reported at about 4.7892 percent. Gilly said other firms bid at yields clustered near 4.86 percent.

Gilly noted Standard & Poor’s had upgraded the city’s rating to AA- late last year, citing "consistently strong budgetary performance, strong cash reserves." He said the transaction will close on Sept. 2, 2025, if council approved the ordinance.

Council approved the ordinance authorizing issuance and sale of the certificates of obligation, and the clerk recorded the motion as carried. There were no amendments to the ordinance reported during the meeting. Closing and detailed financing documents will be finalized before the September closing.

The ordinance directs issuance of debt under the city’s authority for certificates of obligation and provides for security and payment terms as set out in the bond documents; the presentation included the bid tabulation and underwriting results.

Council did not alter the amount presented at the meeting. Staff and advisors said final closing documents will reflect the bid award and standard bond covenants and security provisions.