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Brainerd sells $3.275 million in GO bonds; S&P rating held at AA‑
Summary
Council approved sale of $3,275,000 general obligation bonds, Series 2025A, with Raymond James the winning bidder and a 20‑year repayment plan; S&P assigned and maintained a double‑A minus rating.
The Brainerd City Council on Oct. 20 approved awarding $3,275,000 of general obligation bonds (Series 2025A) to Raymond James following a competitive sale earlier the same day.
Chris Hogan, municipal advisor with Baker Tilly, presented the sale results: the bonds were structured with a 20‑year repayment schedule, the estimated purchase estimate prior to sale was about 3.75% and the low bid came in at roughly 3.50%. Ms. Hogan said the sale generated a premium that was used to reduce the issue size. Proceeds will finance accessible public improvements and water and storm sewer projects; repayment will come from a combination of general tax levies, special assessments and water/storm sewer net revenues.
S&P Global assigned and maintained a rating of double‑A minus. Hogan said S&P cited healthy fund balance and liquidity, conservative management practices and market and population growth in the tax base as positive factors. The council voted unanimously to accept the recommendation and award the bonds.
The bonds include an optional redemption date of Feb. 1, 2035 (a 10‑year optional redemption). Staff noted an estimated premium of about $290,000 that reduced the final bond issue size.
