Bloomington secures $9.1 million in park improvements at favorable rates
The Bloomington City Council approved a bond sale on August 7 that will fund major upgrades to the city's parks and facilities while saving taxpayers approximately $2.4 million through an unexpectedly low interest rate.
The council adopted a resolution to sell General Obligation Charter Bonds, securing $9.1 million for capital improvements across the city. The funds will support projects at Tretbaugh Park, Bryant Park, and Dred Scott Fields, as well as parking lot improvements. Mayor Tim Busse highlighted the financial success of the issuance, noting the city locked in an interest rate of 2.729 percent—significantly lower than anticipated when the council first authorized the bond sale in April.
When the council initially approved the bond issuance, officials expected to borrow up to $11.5 million and anticipated needing $10.29 million. The final amount of $9.1 million, which includes all issuance costs, represents a $2.4 million savings. Busse attributed this favorable outcome to three factors: Bloomington's three Triple A bond ratings reflecting strong financial management, the city's emphasis on social outcomes in its bond structure, and favorable timing in financial markets.
The projects align with the city's Park System Master Plan and will deliver tangible community benefits. Tretbaugh Park will gain the city's first mountain bike skills course, while Bryant Park will feature the city's first fully inclusive and accessible playground designed for people with disabilities. These improvements qualify the bonds as "social bonds" under international standards because they target essential services and specific populations including people with disabilities, historically underserved communities, and families with young children.
In other council business, the city celebrated strong public safety results. Mayor Busse reported that crime in Bloomington is down 16 percent from last year, putting the city on pace for one of its lowest crime rates in history. This followed the city's participation in the 41st annual National Night Out, which drew approximately 320 neighborhood groups. Additionally, the council heard an update on the Hatch Bloomington Retail Pitch Competition, with three finalists—Kalsoni (activewear), Nunaa (West African cuisine), and Scramblin' Egg (breakfast)—set to present at the Hatch-Off event on August 22. The winner will receive a $100,000 business assistance award, to be announced in early September.
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Votes (1)
Adoption of Resolution Awarding Sale of General Obligation Charter Bonds
The Council adopted a resolution to sell General Obligation Charter Bonds, enabling financing for significant capital improvements in parks and other city facilities. The Mayor highlighted the remarkable financial success of this issuance, noting a significantly lower interest rate and a final amount that was $2.4 million less than anticipated. This favorable outcome was attributed to Bloomington's stellar financial reputation (three Triple A bond ratings), the city's embedding of Environmental, Social, and Governance (ESG) issues into its bond process by emphasizing the social outcomes of the projects, and favorable timing in the financial markets.
Notable Quotes (4)
THE FIRST WAS THAT SIGNIFICANT INVESTMENT IS NEEDED TO UPDATE AND IMPROVE THE QUALITY OF PARKS IN BLOOMINGTON. THE SECOND IS THAT BLOOMINGTON HAS THE OPPORTUNITY TO RETHINK WHAT PARKS COULD OR SHOULD BE.
INTEREST RATE OF 2.729 PERCENT. THAT’S SIGNIFICANT BECAUSE WHEN THE COUNCIL FIRST AUTHORIZED BOND ISSUANCE IN APRIL, THE MAXIMUM AMOUNT WAS SET AT $11.5 MILLION. WE WENT TO MARKET EXPECTING THE AMOUNT TO BE $10.29 MILLION. WHEN THE BIDDING WAS COMPLETE AND THAT FAVORABLE INTEREST RATE WAS SET, THE FINAL AMOUNT WAS $9.1 MILLION WHICH INCLUDES ALL THE COSTS OF ISSUANCE. ABOUT $2.4 MILLION LESS THAN ORIGINALLY ANTICIPATED. THAT’S GOOD NEWS.
ONE OF THOSE RATING AGENCIES, STANDARD AND POORS WROTE: BLOOMINGTON’S KEY CREDIT STRENGTHS INCLUDE ITS VERY STRONG AND EXPANDING ECONOMY, WHICH COUPLED WITH ROBUST FINANCIAL MANAGEMENT PRACTICES, HAS LED TO STEADY REVENUE GROWTH AND A STRONG OVERALL FINANCIAL PROFILE. OUR REPUTATION DEFINITELY PLAYED AN IMPORTANT ROLE.
TO QUALIFY AS A SOCIAL BOND, THE PROCEEDS MUST FINANCE SOCIAL PROJECTS OR ACTIVITIES THAT ACHIEVE POSITIVE SOCIAL OUTCOMES AND/OR ADDRESS A SOCIAL ISSUE. THESE PROJECTS FOCUS ON IMPROVING ACCESS TO AN ESSENTIAL SERVICE – PARKS, AND TARGET SPECIFIC POPULATIONS LIKE PEOPLE WITH DISABILITIES, HISTORICALLY UNDERSERVED POPULATIONS, AND FAMILIES WITH YOUNG CHILDREN.
Ordinances & Resolutions (4)
Official action adopted by the Council to finance capital improvements.
The financial instrument issued by the city to fund capital projects.
Guiding document for park system priorities and recommendations, informing capital improvements.
International goals referenced to qualify city bonds as social bonds.
Source document
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Other Topics from This Document
Hatch Bloomington Retail Pitch Competition Update
National Night Out and Public Safety Report
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