Coon Rapids Secures Favorable Interest Rate On $6.2 Million Bond Sale, Reducing Taxpayer Burden

Coon Rapids Secures Favorable Interest Rate On $6.2 Million Bond Sale, Reducing Taxpayer Burden

COON RAPIDS, MN – June 4, 2025 – The City of Coon Rapids has successfully navigated the municipal bond market, securing a lower-than-expected interest rate on its $6,215,000 General Obligation Bonds, Series 2025A. The favorable outcome, approved by the Coon Rapids City Council on Tuesday, June 3, 2025, is projected to reduce the city's annual levy requirement by an estimated $20,000.

The bond sale, initially proposed at $6,850,000, saw an adjustment to $6,215,000 due to an offering premium and prepayments from property owners. During the bond bid opening, TD Securities emerged as the winning bidder, offering a true interest cost of 3.418%. This rate was significantly lower than anticipated, providing immediate financial benefits to the city.

Municipal adviser Nick Anhut of Ehlers and Associates presented the results to the City Council, highlighting the highly competitive nature of the bids and the positive reception the city's bond rating received in the market. The city's strong financial standing and bond rating, affirmed at Aa1 by Moody's Investors Service, played a crucial role in attracting competitive bids and achieving such a favorable rate.

This successful bond sale underscores the City of Coon Rapids' commitment to fiscal responsibility and efficient financial management. The funds from these bonds will be utilized to finance various critical infrastructure projects, including street improvements, and water revenue needs.

While some council members expressed general concerns about ongoing borrowing, the unanimous approval of the bond sale reflects the council's recognition of the immediate financial advantages gained through this advantageous interest rate. The reduced annual levy requirement, from an expected $385,000 down to $365,000, directly translates into savings for Coon Rapids taxpayers.

The City of Coon Rapids continues to explore strategies to minimize future borrowing while ensuring the necessary investments in its infrastructure and services for the benefit of its residents.

MinneapoliMedia