Eagan council approves $18.25 million bond sale to fund community center and utility projects

The Eagan City Council voted Feb. 18 to award the sale of $18,250,000 in general obligation tax abatement bonds, series 2025A, to finance improvements to the city’s community center and utility systems.

Tammy Amdahl, financial advisor with Northland Securities, told the council the city received 11 bids and recommended awarding the bonds to Fidelity Capital Markets of Boston, Massachusetts. Amdahl said Moody's Investors Service affirmed Eagan’s AAA rating and that Fidelity's low bid produced a final true interest cost of about 3.67 percent.

The bond sale was advertised initially as up to $19,370,000. Amdahl said Fidelity bid with premium, and the premium was applied to reduce the par amount to $18,250,000; she said using premium in that way has no impact on the city's cash flow. The council placed the matter on the agenda as an item of old business after staff reported the bid results.

There was no public comment during the period the council opened for comments on the proposed sale. Councilor Espinat moved to adopt the resolution awarding the bonds to Fidelity Capital Markets; the motion was seconded and carried by voice vote.

The resolution does not specify an ordinance or resolution number in the verbal record. Council staff said the issuance was authorized by council action in December and that the sale results required a formal award resolution on Feb. 18. Any subsequent administrative steps such as closing the bond sale and finalizing legal documents were not discussed at length during the meeting.

Details from the presentation and the vote: - Bids received: 11. - Low bidder recommended: Fidelity Capital Markets, Boston, Massachusetts. - Final par amount adopted by council: $18,250,000 (initial notice listed $19,370,000). - Reported true interest cost (approx.): 3.67 percent (rounded from bid materials). - Credit rating: Moody's affirmed AAA (as reported by Northland Securities).

The council adopted the consent agenda earlier in the meeting and had no other business following the bond award. No members of the public spoke on the bond sale at the meeting.

The council’s prior authorization in December to issue the bonds was referenced by staff during the presentation. The record at the Feb. 18 meeting did not contain a roll-call vote tally or a specified seconding councilor for the motion; the motion was recorded as seconded and the mayor announced the motion carried.