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Edwardsville approves $16 million temporary notes after 3.58% bid, lowering projected interest costs
Summary
City council adopted a resolution authorizing $16 million in general‑obligation temporary notes after a competitive sale that produced a 3.58% winning bid from Robert W. Baird; staff said the lower rate reduces projected interest costs by about $800,000 and closing is scheduled for March 20.
The Edwardsville City Council voted to adopt Resolution 2025‑02 authorizing issuance and delivery of $16,000,000 in general obligation temporary notes to temporarily finance internal city improvements.
Clayton Kelly, the city’s financial adviser with Piper Sadler, told the council the bids taken that morning produced a winning offer from Robert W. Baird at 3.58%, well below the 5% interest assumption used in prior planning. ‘‘That rate reduces the interest cost throughout the term of the temporary note by about $800,000 compared with our earlier projection,’’ Kelly said. He added the city received a good‑faith wire of $320,000 from the winning bidder and that closing is scheduled for March 20.
Bond counsel Tyler Ellsworth of Kutak Rock said the redline changes in the packet reflect numeric updates from the sale and that approving the resolution authorizes staff and bond counsel to accept the bid and execute closing documents. Council members asked about the permissive timing to convert the temporary notes to permanent financing; Kelly said the optional redemption date is June 1, 2026, and the city can convert within roughly 90 days of that date if market conditions are favorable.
Council approved the resolution on a roll call vote. The city manager and finance team said proceeds will allow work on multiple internal improvement projects while staff continues to monitor long‑term rates before locking in permanent financing.
