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Council authorizes presale report for $4.33M general obligation bond to fund water projects
Summary
The council approved a presale report and resolution authorizing the issuance of General Obligation Bond Series 2024A, proposed at $4,330,000, to finance wells, watermain, equipment and preliminary water-plant expenses; staff and advisors expect bids and an October 7 sale date and reported a AA+ rating.
The Minnetrista City Council approved a presale report and resolution to issue General Obligation Bond Series 2024A with a proposed aggregate principal amount of $4,330,000 to finance water infrastructure.
Todd Hagen of Ehlers & Associates reviewed the presale report, which allocates roughly $2,500,000 for wells and water main (20-year term), about $600,000 for various equipment certificates (5‑year term), and approximately $1,100,000 for preliminary expenses tied to a larger water treatment plant (20-year term). Hagen said the city currently has a AA+ bond rating and that staff expect to present bids following an October 7 sale date; preliminary run estimates showed interest near the mid-3 percent range for the 20-year portion depending on market conditions.
Hagen explained the city bundles multiple financing purposes into one bond to reduce issuance costs and that staff will use the city’s bond counsel and Standard & Poor’s as the rating service. Council asked routine questions about call dates and ratings; Hagen said he did not anticipate a rating change and noted the city’s fund balances and disclosure practices support a strong rating.
Council moved and approved the presale report and authorizing resolution; staff will return with bid results following the sale.
Next steps: the city will take competitive bids on or near Oct. 7 and return to council with bid results and a final financing package for formal approval.
