City Surface Water Improvements: Financing Update

Mill Creek Surface Water Infrastructure Improvements Move Forward with Low Interest Rate Financing
Posted on 06/27/2019
low interest rate note

The City of Mill Creek is in the process of issuing a Limited Tax General Obligation Bond to finance utility improvements consisting of surface water infrastructure improvements. 

Over the last few months, the City researched financing options and decided to pursue bank financing for the 15-year Limited Tax General Obligation Bond. On June 11, the City selected Zion’s Bank of Washington with a tax-exempt interest rate of 2.44%. The Limited Tax General Obligation Bond will be funding approximately $3,322,000.

“We strategically timed the financing while interest rates are low,” said Mayor Pam Pruitt. “We are always looking for ways to save money and we are very pleased with the results of the bank bids. We made a special effort to contact our local bank branches in the Town Center to give them the opportunity to bid on the City’s financing.”

“The low interest rate bids are a result of the current market. The strength of our local economy and financial management of the City were also important factors for the credit review by the banks. The City received a total of eight bids from various banks, many of them local to Mill Creek,” according to Peggy Lauerman, director of Finance & Administration.

City staff worked closely with Jim Nelson of D.A. Davidson’s Public Finance Department (serving as Placement Agent) on structuring the Limited Tax General Obligation Bond. Jim Nelson provided guidance throughout the process of acquiring the bank bids and compiled the necessary documents required for the bank’s due diligence.