SIOUX FALLS, SD (KELO-AM) The bonds to finance the $22 million Sioux Falls City Services building will be sold October 20.
City Finance Director Tracy Turbak says up to $25 million of sales tax revenue bonds will be sold by a competitive bid process. Bids will be accepted until 10:15 a.m. on the date of the sale.
“The timing of this bond sale is very good, as interest rates are near historical lows," says Turbak,"The City’s excellent credit rating will translate to even lower borrowing costs,”
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.
Opponents of the new city building had tried for months to stop, delay or at least slow down the bond sale, most prominently through a petition drive to put the project to a public vote. The petition signatures were rejected by the city because a wrong form was and Circuit Judge Mark Salter upheld the city's decision.
Mayor Mike Huether has said that a new city administration complex is the most prudent use of tax dollars to continue to serve the citizens as the city grows.