City Administration Building Bonds Will Be Sold on October 20
The City of Sioux Falls will sell up to $25 million of sales tax revenue bonds to finance the construction of the City Administration building on Thursday, October 20, 2016. Bonds will be sold by a competitive bid process, and bids will be accepted until 10:15 a.m. on that date.
The project budget for the City Administration building has been established at $21.9 million per ordinance, which is the amount the City will spend to design, construct, furnish, and equip the new building. This total also includes the improvements to Van Eps Park and Dakota Avenue.
“The timing of this bond sale is very good, as interest rates are near historical lows. The City’s excellent credit rating will translate to even lower borrowing costs,” says Tracy Turbak, Director of Finance. “Our strong and growing economy, including growing sales tax receipts, and our City’s prudent fiscal oversight and strong management have caught the attention of Moody’s and potential investors.”
Last week, Moody’s Investor Service announced an updated bond rating for the City of Sioux Falls. This is a formal and necessary step before the bond sale could take place. Moody’s assigned the City a bond rating of Aa2, which is consistent with previous sales tax bond issues. Out of 22 possible ratings on Moody’s scale, there are only two ratings above the City of Sioux Falls’ rating.
The bonds will be sold competitively by the City’s municipal bond advisor, PFM Financial Advisors LLC. Interested investors should contact their personal financial advisor or investment broker.