Council approves $10.88 million tax‑abatement bond sale to fund parks and operations campus expansion

The Rochester City Council unanimously approved the sale of $10,880,000 in general‑obligation tax‑abatement bonds (Series 2025A) on April 7, 2025, awarding the competitive bid to Piper Sandler.

City Finance Director Brian Anderson introduced municipal adviser Chris Hogan of Baker Tilly, who told the council the bonds were marketed at roughly $10.985 million and were adjusted to $10.88 million after strong pricing. "The winning bid came in today at 3.54%," Hogan said, noting the sale produced favorable proceeds and lower-than-expected interest costs after volatile market movements.

The bonds will be used to finance an expansion of the city’s park maintenance building and to pay issuance costs as part of a roughly $43 million campus project for parks, forestry and public‑works operations; the sale covers about $11.6 million of the total project cost. Hogan told council that S&P and Moody’s assigned the city AAA ratings, citing the city’s financial management and economic base, and that seven underwriters submitted bids.

Hogan said the favorable pricing generated proceeds that allowed the city to prepay an interest payment and reduce the principal size. The municipal adviser estimated an annual debt‑service improvement compared with earlier pricing scenarios, calling the result "an exceptional pricing result" in the current market.

Council members asked about rating sensitivity. Hogan said a single‑notch downgrade would likely add only a few basis points to the rate. After limited discussion, the council voted to award the sale as recommended and to authorize execution and delivery of the bonds.

The resolution approved by council directs staff to complete final sale paperwork and execution; the council did not specify additional conditions during the meeting.