City Administration Building Borrowing Rate Is a Home Run for Sioux Falls
On Thursday, October 20, 2016, the City received extremely competitive bids on bonds that will provide $21.9 million to fund construction of the new City Administration Building. The City received five competitive bids on these bonds and accepted the lowest bid from Hilltop Securities, Inc., with a true interest cost of just 3.09 percent on the 20-year tax-exempt bonds.
“This incredible borrowing rate is a testament to our city’s financial strength and the insatiable demand for investing in Sioux Falls. The timing of this bond sale couldn’t be much better, and it turned out to be a home run for Sioux Falls taxpayers,” says Mayor Mike Huether.
“Bond investors showed tremendous interest in these bonds, and we are incredibly happy with the results of the sale. The 3.09 percent interest rate on these City Administration Building bonds even beats the outstanding 3.21 percent rate the City got on the Events Center bonds,” says Tracy Turbak, Director of Finance.
The bond proceeds will be used to design, construct, furnish, and equip the new building that has been vetted for nearly a decade. The $21.9 million project budget also includes the improvements to Van Eps Park and Dakota Avenue. The bonds will be repaid using revenues generated by the City’s existing second penny sales tax.