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Council awards $19.745M general-obligation bond sale at lower-than-expected rates
Summary
City sold general-obligation bonds with strong market interest (nine bidders) and awarded the series to Piper Sandler at an effective true interest rate near 3.287%, producing multi-year debt-service savings; the council approved the resolution unanimously.
The Bettendorf City Council unanimously approved a resolution directing sale of a general-obligation bond series with three purposes — the CIP (streets and sidewalks), urban renewal projects, and police-station equipment — and awarded the bonds to Piper Sandler. Baker Tilly principal Elizabeth Bergman reported nine bidders and substantially lower rates than estimated in December; staff reported an average rate near 3.281% on the winning bid and recommended award to Piper Sandler.
Councilor Norman moved the resolution authorizing award of the bonds at a par amount adjusted to $19,745,000 and a total purchase price as adjusted of $22,051,268.74, with a true interest rate reported in the resolution at approximately 3.2872%. Bergman said the results were driven by the number of bidders and Bettendorf's AA+ S&P rating, and staff described estimated annual debt-service reductions of roughly $100,000 in the earlier years and about $50,000 in the later years compared with previous estimates.
The council called the roll and unanimously approved the resolution directing the sale.
