Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Mount Vernon Council adopts FY2025-26 budget and approves up to $2.5 million bond sale to fund Rachel Street and Uptown lighting
Summary
The Mount Vernon City Council on May 19 adopted the fiscal 2025-26 budget after a brief public hearing with no public comment and approved the sale of general obligation capital loan notes up to $2.5 million to finance Rachel Street improvements and Uptown streetlights; the low bid carried a 3.9315% true interest rate.
The Mount Vernon City Council on May 19 adopted the City's fiscal year 2025-26 budget and approved the sale of general obligation capital loan notes not to exceed $2,500,000 to pay for Rachel Street improvements and new Uptown streetlighting.
Mayor Thomas M. Wieseler opened a public hearing on the proposed budget at 6:36 p.m. and, after noting the budget presentation is available on the City website and that there were no public comments, closed the hearing. Council then approved Resolution #5-19-2025A to adopt the 2025-26 budget on a motion by Councilmember Rose, seconded by Councilmember West; the roll-call vote was Andresen, West, Tuerler, Engel and Rose — all yes.
Council also considered Resolution #5-19-2025B authorizing the sale of general obligation capital loan notes, Series 2025, to fund street and lighting work. Maggie Burger of Speer Financial was present to explain bids and terms. According to the presentation to Council, four bids were received and Northland Securities, Inc. submitted the low bid with a true interest rate of 3.9315%. The low bid included a premium of $13,274.55 that the City will apply to buy down the stated interest from 4% to the true interest rate of 3.9315%.
Under the terms discussed, the first principal payment will be due June 1, 2026. The financing includes a callable provision allowing the City to refinance or pay off the notes after June 1, 2032; if not called, the final maturity date is June 1, 2040. Council approved the resolution by motion of Tuerler, seconded by Andresen; the roll-call vote was unanimous.
The bond proceeds will be used for reconstruction work on Rachel Street where it intersects Highway 1 and for the Uptown streetlights project. The City noted Mount Vernon Bank participated in the low bid. The City will complete customary post-sale reporting and commence the project procurement and scheduling steps tied to the approved financing.
