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Lake Elmo council approves $2.025 million GO improvement bond sale; Moody’s affirms AA1 rating
Summary
The council approved Resolution 2025‑054 awarding the sale of Series 2025A general‑obligation improvement bonds to Brownstone Investment Group at a true interest cost of 3.32%. Staff said Moody’s affirmed the city’s AA1 rating. The motion passed 4‑1.
Tammy (Northland Securities), the city’s financial advisor on the bond sale, told the council that bids were received for the Series 2025A general obligation improvement bonds and recommended awarding the sale to Brownstone Investment Group. She said the original offering par amount was reduced by underwriting premium; the final par amount presented in the resolution was $2,025,000 and the true interest cost was 3.32%.
Tammy said Moody’s Investor Service affirmed the city’s existing AA1 rating during the sale process. Council discussion included questions about long‑term liabilities and fixed‑cost ratios as the council proceeds with its capital improvement planning.
A motion to approve Resolution 2025‑054 (awarding sale of Series 2025A bonds and fixing terms) was made and approved; the clerk recorded the vote as 4 in favor and 1 opposed.
Why this matters: The bond sale provides financing for street improvement projects and affects the city’s long‑term debt profile. The affirmed credit rating and the sale terms determine debt‑service costs that will figure into upcoming CIP and budget discussions.
