The Des Moines City Council on Oct. 8, 2025 voted to direct the sale of its general obligation bonds series 2025A and taxable series 2025B after a presentation from the city finance director and its municipal advisor.

City Finance Director Nick Schall and John Burmeister of PFM presented results from the bond sale process, saying the city drew national interest and competitive pricing. Burmeister said the city received an unusually large volume of proposals, including bidders from across the country, and that the sale produced a low true interest cost (TIC) in the 3.6% range on the longer maturities.

The memorandum and sale results showed 16 bids for the larger A series and four bids for the smaller taxable B series. Piper Jaffray submitted the low TIC on the A series at 3.6984 percent, and Northland Securities submitted a low on the B series in the neighborhood of 3.83 percent. The consultants told council members the market interest reflected favorable municipal conditions that day, including a lighter calendar (Wednesday) that reduced competition from other issuers.

Council discussion and the materials provided to the council indicated the city reduced the par amount on the A series from $69,000,009.80 to $66,000,008.80 because of a premium received on the bonds. The B series was described in the presentation as a roughly $6,000,000 taxable component that includes financing for Principal Park and property improvements; council materials paired the overall financing into amortization “buckets” of five, 10, 15 and 20 years. The presenters said about 10 percent of the aggregate $60,000,000 transaction is scheduled to be paid down in the first year because of TIF and debt-service levy structure.

The rating agencies and sale documents were discussed in general terms. Burmeister summarized S&P’s view, noting the city’s “strong financial performance,” robust financial management, healthy reserves and strong liquidity; the sale presentation referenced a S&P rating at double-A plus, which the presenter described as one notch below AAA.

Council members and staff thanked the finance team, the city’s legal advisors and PFM for the work putting the sale together and highlighted that holding the sale on a Wednesday likely increased bidder interest. After discussion the council voted 7-0 to direct the sale of series 2025A and later 7-0 to direct the sale of taxable series 2025B.

The financing will move forward under the terms presented to the council; specific underwriter allocations and final pricing were provided in the sale report appended to the council materials.