The Two Harbors City Council passed a resolution authorizing the issuance, sale and delivering of $1.92 million in general obligation bonds to pay for the 2019 streets and alleys improvement project and the purchase of a new fire engine.
The bids on the bonds came in lower than expected at 2.34% over a 15-year period. Todd Hagen, a municipal adviser from Ehlers & Associates, presented the council Tuesday, July 9, with information about the bond bidding process. Hagen attributed the lower bids to the city's bond rating. The city of Two Harbors has a AA-minus rating, a high grade rating.
The city received six bids for the bonds, four more than last year. The low bidder was Piper Jaffray, based out of Minneapolis.
Originally, the principal amount set for this bond was $2.1 million, but the principal amount was reduced due to a premium bid from the winning bidder.
Counselors voted unanimously for the resolution; Councilor Cathy Erickson was absent. The sale closing is set for July 24.