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<br /> <br /> <br />Northland Securities, Inc. Page 2 <br />Executive Summary <br />The following is a summary of the recommended terms for the issuance of $2,185,000 General <br />Obligation Improvement Bonds, Series 2025A (the “Bonds”). Additional information on the <br />proposed finance plan and issuing process can be found after the Executive Summary, in the <br />Issue Overview and Attachment 3 – Related Considerations. <br />Purpose Proceeds from the Bonds will be used to finance the City’s 2025 <br />street projects and to pay costs associated with the issuance of <br />the Bonds. <br /> <br />Security The Bonds will be a general obligation of the City. The City will <br />pledge special assessments collected from benefitted properties <br />and ad valorem taxes for payment on the Bonds. <br /> <br />Repayment Term The Bonds will mature annually each February 1 in the years <br />2027 through 2036. Interest on the Bonds will be payable on <br />August 1, 2026, and semiannually thereafter on each February <br />1 and August 1. <br /> <br />Estimated Interest Rate True interest cost (TIC): 4.18% <br /> <br />Prepayment Option Bonds maturing on and after February 1, 2034, will be subject <br />to redemption on February 1, 2033, and any day thereafter at a <br />price of par plus accrued interest. <br /> <br />Rating A rating will be requested from Moody’s Investor Services <br />(“Moody’s”). The City’s general obligation debt is currently <br />rated "Aa1” by Moody’s. <br /> <br />Tax Status The Bonds will be tax-exempt, bank qualified obligations. <br /> <br />Risk Factors There are certain risks associated with all debt. Risk factors <br />related to the Bonds are discussed in Attachment 5. <br /> <br />Type of Bond Sale Public Sale – Competitive Bids <br /> <br />Proposals Received Tuesday, July 15, 2025 @ 10:00 A.M. <br /> <br />Council Consideration Tuesday, July 15, 2025 @ 7:00 P.M. <br /> <br />