Webster Groves approves $4.905 million bond sale, adopts ordinance 9305

The Webster Groves City Council unanimously adopted ordinance 9305 on July 7 authorizing the issuance and sale of $4,905,000 in general obligation bonds, city municipal adviser Colin Hopert told the council.

"We sold the city's $4,905,000 worth of bonds today via competitive sale," Hopert said, adding the sale drew 10 bids and the lowest bid was from Robert W. Baird with a tick of 3.585. "There was premium of just under 360,000," he said, and after issuance costs the city will have an approximate project fund deposit of $5,100,000 to spend in accordance with the bonds.

The ordinance prescribes bond form and details, and provides for an annual levy to pay principal and interest as they become due. Hopert said the city's underlying rating is Aa1, which supported strong market demand for the bonds.

Council substituted the version of the bill containing final pricing and then voted on the substitute and the amended bill. Council members answered roll call in the affirmative when the vote was taken; the clerk announced recorded 'yes' responses for Council member Alexander, Council member Hasselmeyer, Council member Waugh, Council member Mitchell, Mayor Laura Arnold and Council member Smith.

Why it matters: the bond proceeds and premium increase available capital for the projects specified in the bond documents and allow the city to move forward on planned infrastructure work. Colin Hopert said the funds should be available for spending in about two weeks, once closing occurs and project funds are deposited.

Next steps: with the ordinance adopted, city staff will proceed with closing and disbursing the proceeds consistent with the bond covenants and project plan presented to the council.