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Fergus Falls council approves nearly $15 million bond sale to fund aquatic center, park and street projects
Summary
The council approved a bond sale that will net $14,950,000 in construction funds for a new aquatic center, Day Lagoon park improvements and street projects. Finance Director Bill Sommer said the sale attracted 12 bidders; the low true interest cost was 3.3% and the debt matures Feb. 1, 2038.
Fergus Falls — On July 15, the Fergus Falls City Council approved a bond sale to finance an aquatic center, Day Lagoon park improvements and several street projects.
Finance Director Bill Sommer told the council the city invited bids and received 12 responses. The sale was structured with a par amount of $16,870,000 but, because the purchaser paid a reoffering premium, the par was reduced and the city will deposit premium dollars into the construction fund. “When we came to you ... the estimate was a true interest cost of about 4.07%, and our low bidder today was TD Securities at 3.3,” Sommer said, citing a favorable result.
The finance presentation explained the bonds will be split between a sales-tax–backed portion for the aquatic center and park work and a property-tax/special-assessment portion for street improvements. Sommer said the council will levy $78,055 for calendar year 2025 for the street portion, down from an earlier estimate of $89,000 because of the lower interest rate.
Sommer also said Moody’s Investor Service affirmed the city’s double-A3 rating and Baker Tilly handled underwriting details. The bonds mature Feb. 1, 2038; the city administrator will sign bid documents following council approval.
The council approved the resolution to accept the bond sale by roll call during the meeting; staff will proceed with closing and deposit premium proceeds into the construction fund.
