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Augusta accepts 3.4% temporary-note bid to fund grid modernization
Summary
Council awarded Series 2026-1 general obligation temporary notes to Northland Securities at a 3.4% winning bid, lowering estimated interest costs by roughly $300,000 and enabling a $6,765,000 deposit and construction start by Aug. 27.
Augusta's City Council voted to accept the winning bid from Northland Securities to sell Series 2026-1 general obligation temporary notes, a short-term construction financing step for the city's low-voltage grid conversion and related engine upgrades.
"The winning bid, Northland Securities at a 3.4%," financial adviser Clayton Kelly told the council, summarizing results from a four-bid sale and notes that the award comes in below prior rate estimates. Kelly said that at the received rate the city's total interest cost will be roughly $300,000 less than earlier estimates and that $6,765,000 will be deposited upon closing, currently scheduled for Aug. 27.
Councilors followed the presentation with a formal motion to accept the bid and later approved Resolution 2026-11, which authorizes issuance and delivery of the temporary notes and sets the framework for using an annual tax levy to secure payments as required. The measure passed by voice vote with no recorded opposition during the meeting.
The financing is a short-term measure intended to match final permanent financing to actual final construction costs when those are known; city staff and advisors said the temporary notes reduce near-term interest expenses and provide funds to begin construction.
