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Helena staff report successful bond sale process ahead of vote to authorize $7 million GO bonds for fire station
Summary
City staff reported a competitive bond sale and a strong credit rating in advance of a resolution scheduled Monday to authorize the issuance and sale of up to $7,000,000 in general-obligation bonds to buy land and build a fire station and training center.
City finance staff told the Helena City Commission on July 16 that the city’s process to issue general-obligation (GO) bonds for a new fire station and training center has produced strong investor interest and a favorable credit rating, and that a formal resolution to authorize the sale will be brought to the commission for adoption at the next meeting.
Finance director Dan (title given in meeting) summarized the rating and bidding process, saying the city received a positive rating from S&P Global and strong market interest when bonds were offered. Dan said, “we ended up with a premium on the bonds of $372,147,” and that the low competitive bid came from Piper Sandler. He reported the awarded interest rate was 3.787% and that 13 bidders submitted proposals.
The bonds would finance land acquisition and construction of a new fire station and a training center. City Manager Burton, Community Development Director Christopher Brink and Fire Chief John Campbell participated in the rating presentation to S&P Global, according to staff. City Controller Eliza Salonga and the city’s financial advisor, Stephen Scharf of Baker Tilly, also took part in preparing the information for the rating agency and bidders.
Dan said about $145,000 of the premium will cover bond insurance costs and that approximately $227,000 of the premium could be used for project costs, providing added contingency for the project. He told the commission that the official statement for bidders was completed after receiving the rating and that staff planned to present a resolution on Monday to authorize the sale.
Mayor Collins and several commissioners praised staff for the work assembling the financial, economic and capital planning documentation that informed the rating call. Commissioner remarks noted recent city financial-policy work and long-term capital planning as background for the favorable market reception.
No formal commission action on the bond sale was taken at the July 16 administrative meeting; staff said a resolution to authorize execution and sale would be placed on the upcoming meeting agenda for adoption.
Ending: The commission will consider the resolution authorizing the issuance and sale of the bonds at its next meeting. Staff materials presented at the July 16 meeting included the rating call summary, the city’s capital plan and the bid results summary provided by the financial advisor.
