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Council approves $2.00 million bond sale; Northland presents debt study and affirms AA- rating
Summary
The council approved the award of the Series 2025A general obligation bond sale totaling $2,000,001.45, with a true interest cost of about 3.29% and a reoffering premium of $213,391.07; Northland presented a debt study and noted S&P affirmed a double A-minus rating.
The City of Saint Joseph on Sept. 15 authorized the sale of Series 2025A general obligation bonds to finance street improvements and equipment, approving a final par amount of $2,000,001.45 and accepting the bond award recommended by underwriter Northland Securities.
Tammy Bridal of Northland Securities told the council the bonds were priced the morning of sale, carrying a 5% coupon with a reoffering premium of $213,391.07 that the city used to reduce the principal. Northland reported a true interest cost of about 3.29% and noted the city’s double A-minus credit rating was affirmed by S&P on Sept. 8.
Council members asked technical questions about premium usage and amortization. Northland summarized the debt study’s key findings: rapid amortization with approximately 90% of existing debt scheduled to retire by 2036, a tax-levy-driven repayment profile for most debt and a favorable financial profile that supports the AA- rating. The council approved the resolution to award the sale by voice vote.
Separately, Northland presented an annual debt study reviewing existing obligations and repayment capacity and recommended the city consider a long-term finance model to reflect likely future debt issuance patterns. The council discussed modeling options for future long-range planning.
