“Time to Move Forward”: City Administration Building Bonds Will Be Sold in October
Circuit Court Judge Mark Salter has ruled in favor of City Clerk Tom Greco and paved the way for the City of Sioux Falls to move forward to finance and construct a new City Administration building.
“City government works at the highest level in Sioux Falls. It worked again during the two-year review of the City Administration building. This prudent investment has been fully vetted, so it is time to move forward and sell the bonds,” says Mayor Mike Huether.
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.”
On Tuesday, 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 City Council has taken every action to effect the bond sale, and the City of Sioux Falls is authorized to sell the bonds at any time after October 1. Bonds will be sold by a competitive bid process in October, but no official date for selling the bonds has yet been set. Interested investors should contact their personal financial advisor or investment broker.