Edina council approves nearly $18 million in general obligation bonds

The Edina City Council approved the sale of nearly $18 million in general obligation bonds at its June 6 meeting, which will pay for a range of services from street reconstruction to the Braemar Golf Course.
Bids were opened on the morning of June 6.
Between the two series of bonds there was nearly $1 million in interest savings due to a favorable financial climate and the city maintaining a AAA bond rating.
“We want to congratulate you all,” Nick Anhut of Ehlers and Associates. “This is very favorable.”
The first series was for more than $9 million, which included nearly $2.2 million for 2017 local street improvements to be repaid with special assessments over 15 years.
It also included $2.7 million, $2.5 million and $2.25 million for water, sewer and storm utility improvements respectively to be repaid with water, sewer and storm revenue over 10 years.
There were seven bids for the A-series bonds. The winning bid was UBS, with a low bid of 1.922 percent, about half a percentage point better than pre-sale estimates one month ago, partially due to the U.S. Department of the Treasury not raising interest rates as initially predicted.
The second or B-series of bonds was for $8.25 million.
Some $7.24 million is for the Braemar Golf Course renovations and will be repaid through golf course revenue over 15 years.
Some $1.01 million is for the Aquatic Center renovations,
similarly to be repaid through Aquatic Center revenue but over a 10-year period.
For the second series, there were eight bidders, the lowest of which came from Raymond James and Associates with 2.62 percent.
Anhut explained that while 1.92 percent and 2.62 percent seem like a wide difference, the rates are accumulated differently based on repayment plans and for the most part are similar rates when sussed out.
“There is a reason why we have a AAA bond rating … when you get to a rewarding day like today, where you save over a million in interest costs, it is pretty delightful,” Mayor Jim Hovland said.
The council voted unanimously in favor of both bond series sales.