Tuesday, January 27, 2015

City Bonds 'Well Received' By Market

The City of Sanford has sold $8.5 million in general obligation bonds to fund the streetscape and sidewalk projects voters approved in Sanford's 2013 bond referendum.

In January, the City received an Aa3 credit rating from Moody’s Investors Service and an AA- credit rating from Fitch Ratings based on its strong fiscal policies, conservative budgeting, and sound financial management.

Out of nine competitive bids received, Bank of America Merrill Lynch’s low true interest cost of 2.3501% was the most favorable.

“The net interest rate the City received for the entire issue was 94 points under the national Bond Buyer’s Index,” notes Gordon Johnson with the Local Government Commission. “The City had a great sale and was well received in the national bond market industry,” he says.

The bond transaction will close in early February and the City plans to begin construction of the projects in March. The general obligation bonds will mature on February 1, 2034. They will be paid using ad valorem tax revenues.

The bond issuance means investment opportunities for the public. Anyone interested in purchasing City of Sanford bonds should contact their investment broker. Purchasing will begin after the transaction closes.

In addition to the streetscape and sidewalk projects, voters also approved $4 million in Greenway and Trails bonds and $2 million in Parks and Recreational bonds. The City plans to issue those bonds in subsequent phases of the revitalization.


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