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Albert Lea approves $1.895 million in GO bonds after low bid, S&P affirms rating
Summary
The Albert Lea City Council approved issuing $1,895,000 in general obligation bonds (Series 2025B) to fund neighborhood improvements, street reconstruction and a parking lot after receiving five bids and an affirmed AA- rating from Standard & Poor—s; the true interest cost was 3.73 percent.
The Albert Lea City Council voted to sell $1,895,000 in general obligation bonds on Aug. 25, approving bond counsel's resolution to fund several local projects.
Rebecca Kurtz, bond counsel with Eller's, told the council the city received five bids and that "Northland Securities was the low bid." She said the true interest cost on the sale was 3.73 percent and that favorable bids allowed the city to reduce the par amount from the earlier estimate of $2,020,000 to $1,895,000 while still fully funding planned projects.
Kurtz also highlighted that Standard & Poor's had affirmed a double-A minus rating with a stable outlook for the city's GO debt, citing fiscal reserves and financial management. "Standard and Poor's talks about the community's consecutive fiscal surpluses" she said, noting reserves and budgeting practices the rating agency commended.
City documents and Kurtz's presentation identified projects to be financed, including assessment-funded neighborhood improvement projects, a state overlay, 11th Street reconstruction, the Freeborn Bank parking lot and work on Eberhardt Street; staff said funds would be available Sept. 11 if the resolution proceeded as presented.
Motion and vote: Councilor Baker moved to approve the resolution authorizing Series 2025B GO bonds; Councilor Christiansen seconded, and the motion carried.
The council did not provide a roll-call tally for the bond vote; the mayor declared the motion carried after a voice vote. The city manager said staff would ensure final bond documents and the resolution match the corrected dollar amount before closing.
