Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Bond topic
No spam. Unsubscribe anytime.
Blaine council authorizes parameters for up to $9.95 million bond sale to fund utilities, pavement and equipment
Summary
The Blaine City Council on Nov. 3 approved a parameters resolution allowing the sale of up to $9.95 million in general obligation and utility revenue bonds to fund water and sewer improvements, pavement projects and capital equipment; two council members said they would vote no, citing concerns about the capital improvement plan and preferring debt reduction.
Blaine’s City Council voted Nov. 3 to authorize a parameters resolution that lets city staff move forward with a competitive sale of Series 2025A general obligation and utility revenue bonds with a maximum par amount of $9,950,000 and a maximum interest cap of 4 percent.
Finance Director Zimmerman told the council the bond proceeds would be used for utility infrastructure upgrades, pavement management projects and general capital equipment — items the capital improvement plan anticipated — and described a delegated pricing process to secure the best market terms. "This establishes a legal framework and financial boundary for the city's financial team to operate within to execute and proceed with marketing and selling the bonds," Zimmerman said. He said staff expects to make a rating call the week of Nov. 10 with a rating report the week of Nov. 17, and staff targeted a sale in the 90-day window that could occur Dec. 2 with settlement on Dec. 18.
Zimmerman outlined repayment sources by project type: utility improvements and equipment would be repaid from utility revenues (water, sewer, stormwater), while pavement projects would be repaid with special assessments and property tax levy. He said the bonds are being structured to achieve the most advantageous interest rate for the city.
Two council members announced they would vote against the resolution. Council member Robertson said she opposed the underlying capital improvement plan adopted last year and preferred using funds to pay down debt rather than fund new purchases. "I will be voting no on this… I was actually one of the council members who recommended paying off debt and not buying more stuff until you keep saving money," Robertson said, adding frustration over longstanding bond obligations dating back to prior years.
Another council member stated they also would vote no for similar reasons, saying they had not supported the capital improvement plan last December.
Despite the objections, the measure passed by voice vote; the transcript records members saying "aye" and those opposed saying "no," and the mayor announced the motion prevailed. The council’s parameters authorization delegates final sale execution to a pricing committee consisting of the city manager and finance director, working with municipal advisors (Baker Tilly is engaged to assist with marketing and negotiation), and allows staff to complete a preliminary official statement and competitive sale within the specified parameters.
What happens next: staff will prepare the preliminary official statement, host the rating call the week of Nov. 10, and return to a future meeting with Baker Tilly to review the outcome of the sale. The parameters resolution allows the city to proceed without setting every final sale detail on the council floor.
Actions and authorities: The council adopted a resolution authorizing the sale (Series 2025A) subject to parameters; the transcript does not record a roll-call tally showing each member’s recorded vote, but two council members announced they would vote no during debate.
