Prior Lake council authorizes $5.045 million bond sale to fund road and capital projects

The Prior Lake City Council on June 23 authorized a competitive negotiated sale of $5,045,000 in general obligation bonds to finance a set of capital projects, including Northwood Road phase 1, Northwood Rose Road phase 2, design work in the Green Heights area and facilities replacement.

Finance Director Klockner told the council the city will solicit proposals from underwriters with bids due July 28 and an anticipated mid‑August closing; Northland Public Finance is the city's municipal advisor and Tammy Omdahl was present to answer questions. "Proceeds from the bonds will be used to finance construction for Northwood Road phase 1, project design and construction for Northwood Rose Road phase 2, project design for the Green Heights area, and facilities replacement and capital improvement projects," Klockner said.

Council members framed the bond sale as the culmination of multiyear planning. Council member Bridal said the work to assemble the project had been years in the making and that the city's bond rating will help reduce borrowing costs. The motion to authorize the sale passed on a voice vote.

The sale will proceed through a competitive negotiated process: the city will solicit bids from underwriters, accept the low bid on July 28, and then close the transaction in mid‑August. The bonds are general obligation securities backed by the city's taxing authority; the council did not specify the final interest rate in the meeting. The city identified Northland Public Finance as its municipal advisor for the transaction.

Next steps: staff will publish the official sale notice, accept bids on July 28 and return to closing in mid‑August. No further council action on the authorization was recorded at the meeting.

(Reporting in this article is based on the council presentation by Finance Director Klockner and the council's voice vote approving the authorization.)