by Dennis Dalman
The Sartell City Council approved the issue and sale of general obligation bonds for $6,445,000 at its June 22 meeting.
The interest rate on the bond will be a stunningly low 1.37 percent, thanks largely to Sartell’s sterling bond rating (see details below).
The funds will be used for the new public-safety facility (headquarters of fire and police departments), for street upcoming reconstruction improvements and for improvements to the city’s water and sanitary-sewer systems.
The bond issuance and sale was handled by Ehlers & Associates of Roseville.
A credit review of Sartell by Standard & Poor, part of the bonding process, earned – once again – some positive comments.
The strong rating, a double A, is, the report states, “testimony to the good work done by the city administration and elected officials, both past and present.”
The virus pandemic did not impact Sartell’s economy nearly as bad as in some cities, according to the report.
Standard & Poor termed the economy and money management of the city “strong” and liquidity and budgetary flexibility “very strong.”
Budgetary performance, however, was adjusted downward from “strong” to “adequate” because of future uncertainty due to the pandemic and a potential in the nation for a continuing recession.
The debt load for Sartell is high, the report notes, but aggressive payback by the city is an offsetting factor, it adds.
If the city doesn’t issue further debt in the next two years, the debt ratio will be much improved, the report notes.