The Pella City Council approved a Resolution Directing Sale of General Obligation Local Option Sales and Services Tax Bonds, Series 2014 during their meeting last week.
As reported, at the February 18, 2014 meeting, Council approved taking additional action for the authorization of a loan agreement and the issuance of not to exceed $4,000,000 General Obligation Local Option Sales and Services Tax Bonds and approval of the electronic bidding procedures and the official statement. The proceeds from the Notes will be used to provide funds to pay costs of renovating, equipping and furnishing the existing indoor swimming pool facility.
Moody’s Investor Services has assigned a credit rating of Aa3 to the City’s General Obligation Bond Issuance as noted in their report issued February 26, 2014, an upgrade from the A2 rating received for the City’s 2010 General Obligation Bond Refunding. Noted in the report is the City’s continued growth in tax base, healthy reserve levels, additional revenue raising flexibility and affordable debt and pension liabilities. Also noted in the report is the Council’s commitment to fiscal discipline achieved through long term financial planning, maintenance of healthy reserve levels and retained flexibility to raise operating revenues.
On March 4, 2014, received bids for the General Obligation Local Option Sales and Services Tax Bonds prior to the Council meeting with the results of the bids being disclosed to Council during the meeting. This resolution awards the Bonds to the bidder with the lowest true interest cost to the City of Pella. In addition, it authorizes the Mayor and City Clerk to sign the statement of contract for the Bonds on behalf of the City of Pella. The term of the Bonds is 9 years with a final maturity date of June 1, 2023.
It is important to note, our Financial Advisor, Public Financial Management and Bond Counsel, Ahlers & Cooney, have reviewed and approved the attached Resolution and sale notice.