The city of Isanti received some good news upon learning of the bids received during a refunding of general obligation tax abatement bonds.

During the Isanti City Council meeting Nov. 16, Jessica Green, from Northland Securities, presented the results of the $1.4 million bond sale that was held earlier that day.

Green explained three bids were received for the bond sale for the general obligation tax abatement bonds, series 2014A, that were issued in 2014 to help fund the construction of the Rum River BMX facility.

Bids were received from United Bankers’ Bank out of Bloomington, Minnesota, for a purchase price of $1.6 million with a true interest rate of 1.1%; Robert W. Baird & Co. out of Milwaukee for a purchase price of $1.7 million with a true interest rate of 1.1%; and Bernardi Securities out of Chicago for a purchase price of $1.6 million with a true interest rate of 1.17%.

Following discussion, the council approved the bid received from United Bankers’ Bank for a purchase price of $1.6 million, with a net interest cost of $80,143.

Green explained the refunding of the bonds will save the city $94,723 throughout the remainder of the bond payment, with final payment being made in February 2030.

“The bonds were rated AA- by Standard and Poor’s, so an acclamation of the outstanding rating for the city that you previously held,” Green said.

The council was happy with the $95,000 in savings.

“I think it looks pretty good. That’s just basically refinancing those prior bonds that we had done and saving almost $100,000, so looks good to me,” Council Member Jimmy Gordon said.

In other action the council:

• Accepted the resignation of Sheila Sellman, the community development director, effective Nov. 15.

• Approved the hiring of Stephanie Hillesheim as the city’s new community development director with an expected start date of Nov. 30. Hillesheim will have an annual salary of $92,294. She most recently served as the community development manager for the city of Princeton.

Load comments