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EDA bond sale for police facility closes in October after favorable bids, consultant says
Summary
Ehlers reported an AA- rating and a premium bid that reduced the bond issue size; the true interest cost was 4.4856% and annual debt service is estimated near $630,000. Closing and availability of funds are expected Oct. 30.
An update to the council from Rebecca Kurz of Ehlers described results of lease revenue bond bidding for the police facility financing. The issue received an AA- rating from Standard & Poor's and a single bid from Baird in Milwaukee with a true interest cost of 4.4856 percent.
Kurz said the favorable market response produced a premium bid that allowed the issue size to be reduced from $10,130,000 to $10,040,000 and that annual debt service is estimated at about $630,000 over the term. She noted the bonds are callable (first call in 2038) and that closing is expected Oct. 30 with funds available to reimburse prior city expenditures on the project.
The presentation included Standard & Poor's rationale (healthy finances, population and market-value growth, robust reserves) and an explanation that the EDA issue is slightly below the city's GO rating because the EDA debt does not carry the city's full-faith-and-credit pledge.
The item was informational; no council action was required.
