Willmar council approves $5.56 million in bonds for 2022 street improvements

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Jul. 22—WILLMAR

— Willmar City Council approved the sale of general obligation bonds Monday to fund the 2022 street improvement projects.

"As always in this market, you do get a little bit nervous, but we did have a very successful sale," said certified municipal adviser Doug Green of Baker Tilly when presenting the sale of general obligation bonds in the amount of $5.56 million to fund the 2022 street improvement projects.

The entire street improvement project is approximately $9.2 million, according to Green. Additional funding for the project came from a variety of sources, including Willmar Municipal Utilities, state aid, and local option sales tax.

Three "very strong" bids were received for the bond sale that were all very close, indicating they are good market-rate bids, according to Green.

Northland Securities offered a true interest rate of 3.1%, which Green said was very good results.

The bonds will be amortized over a 15-year period, and special assessments for the project will bring in approximately $235,000 per year, which will cause the levy to increase by approximately $270,000 per year, according to Green.

Each bond issue requires a credit rating, and Willmar's came in strong at AA3 due to its exceptionally strong operating reserves, strong financial practices, moderately-sized tax base, no environmental problems, and good governance, according to Green.