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Norwalk approves $6.54 million bond sale; council directs $457,160 premium to North River sewer main
Summary
The council approved a $6.54 million general obligation bond sale with a winning bid reporting a 3.5417% true interest cost. Council accepted a $457,160 premium and amended the resolution to place those funds into the North River sewer main project fund; the city’s AA rating was affirmed by S&P.
The Norwalk City Council approved a loan agreement and authorized the sale of $6.54 million in general obligation corporate-purpose bonds and amended the resolution to apply a $457,160 premium to the North River sewer main project.
Finance staff reported that five bids were received for the offering and that the winning bid — identified in the meeting record as from "R CEOs and Company LLC" — produced a true interest cost (TIC) of 3.5417 percent. Gan, the city's finance presenter, said the purchase price amounted to $6.9454 million and that the net interest cost was approximately $1.892 million.
Gan noted that S&P Global affirmed the city’s AA credit rating and that staff recommended accepting the premium and placing it into the North River sewer main fund to cover environmental and easement shortfalls and future phases. Councilors moved, amended the resolution to direct the premium to the sewer project fund, and approved the amended resolution by roll call vote.
The resolution also included standard bond sale provisions and an acceptance of the bid; staff said the city will use the funds for multiple projects already specified in the financing plan, including ADA sidewalk improvements and plow trucks, and most substantially the North River sewer trunk main.
What happens next: staff will execute the bond documents consistent with the approved loan agreement and record the premium in the North River sewer fund for the specified infrastructure work.
