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Forest Lake awards $4.145 million street‑reconstruction bonds; sale yields lower interest and savings
Summary
The council approved a resolution awarding the sale of general obligation bonds for 1st Street reconstruction. Municipal advisor Dan Tinter reported the sale produced stronger than expected results, reducing the final principal to $4,145,000 and yielding approximately $300,000 in savings over the life of the bonds; the city retained a AA+ rating.
The council adopted a resolution awarding the sale of general obligation bonds to fund 1st Street reconstruction, after a presentation by the city’s municipal advisor.
Dan Tinter of Ehlers and Associates told the council that the bond sale attracted eight bids and the low bid allowed the city to reduce the principal from the presale estimate to a final amount of $4,145,000. "The sale of the bond that happened today came in at a more than half a percent lower than we were anticipating... that translates into, I think, about $300,000 in savings over the life of the bond," Tinter said. He added that the city received a reoffering premium that staff used to reduce the size of the bond and that the city maintained its AA+ rating.
Tinter also noted the callable structure: bonds maturing Feb. 1, 2036 and thereafter are callable as of Feb. 1, 2035, meaning the city could refund or pay those maturities at that time. Council moved and approved the award resolution; staff said the closing is expected in about three weeks and that proceeds will be available for project draw requests after closing.
Council thanked Ehlers for coordinating the sale and staff for their work. The council’s action authorizes staff and bond counsel to proceed with closing documents and wire transfers necessary to complete the transaction.
