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Council approves awarding of two bond sales totaling roughly $30.7 million
Summary
The City Council accepted staff recommendations to award Series 2024B general obligation bonds (final size ~$27.72M; low bid UBS at ~3.76% indicated, true interest cost ~3.78%) and Series 2024C taxable housing improvement bonds (final principal ~ $3.07M; low bid Baird at ~5.1% with true interest cost ~5.015%).
Financial advisers reported the results of two bond sales the city conducted Nov. 19. Nick Anhut of Ehlers and Associates said the city’s Series 2024B issue — a tax‑exempt general obligation borrowing for CIP and sales‑tax projects — attracted 13 bids and was awarded to UBS with an indicated 30‑year rate in the mid‑3.7% range. Anhut reported a final par size of $27,720,000 for the 2024B transaction after accounting for reoffering premium and issuance costs and a 30‑year calculated true interest cost of roughly 3.78%.
Anhut said the smaller, taxable Series 2024C issue (housing improvement area financing) received fewer bids (three) and was awarded to Baird with a low bid yielding a roughly 5.1% indicated rate and a calculated true interest cost about 5.015% across the term. That issue’s final par was announced at about $3,065,000 to reimburse construction lending for completed HIA improvements.
Council motions: Council adopted the resolutions awarding the sale of the Series 2024B bonds to UBS Financial and the Series 2024C bonds to the Baird syndicate following staff and bond counsel review of the bids. Staff noted the transactions are scheduled to close pending final paperwork.
Why it matters: The issuances convert short‑term or construction financings to permanent debt and fund voter‑approved sales‑tax projects and repay HIA construction debt. Both Standard & Poor’s and Moody’s affirmed the city’s AAA ratings, which advisers cited as a factor in strong market interest and competitive pricing.
Next steps: Closing is expected in mid‑December pending final documents; staff will return with final closing papers and post‑issuance reporting.
