by Steve Peterson
At their June 11 meeting ,Plymouth County Supervisors voted unanimously for a resolution to proceed with a loan agreement for General Obligation bonds for financing of road and bridge improvements in the ethanol Urban Renewal District of Merrill.
Final approval of the loan agreement and the issuance of the bonds was to be at the supervisors’ June 18 meeting (after this week’s press deadline). County officials will issue the bonds on July 2.
“The funds will be deposited directly to the Ethanol Urban Renewal fund,” said Auditor Stacey Feldman.
The bonds will be for 2015 to 2019. The bonds’ proposal was seeking an A-plus rating from Standard & Poor’s rating service.
Chip Schultz of Ruan Securities told the supervisors on June 11, as of that date, the bond interest rate would be 1.40 percent. A week earlier it was 1.59 percent. The resolution approved by a 5-0 supervisors’ vote “locks in” that interest rate.
Schultz told supervisors the total bond issue has changed to $2,225,000 from $2,305,000 due to premium sales.
“We have had a significant interest from local Plymouth County banks,” said Schultz.
At the previous week’s meeting, Schulz said the bond interest rates were on the rise but were expected to be lower the next week.
Bankers Trust Company of Des Moines will be the registrar and paying agent for the bonds.
Dorsey & Whitney LLP of Des Moines is the consulting attorneys for the county.
“We further certify that the County does not have outstanding tax exempt obligations, issued during the current calendar year, including the bonds, in excess of $10,000, nor will the county issue additional tax exempt obligations issued during the calendar year, including the bonds, that would exceed $10,000,” the resolution states.
The weighted average maturity of the bonds does not exceed 120 percent of the reasonably expected economic life of the project.