For Immediate Release
March 22, 2010
For More Information Contact:
Mayor's Press Office
Mayor Thomas M. Menino has announced that the City has sold 2010 Bonds (Series A, C, and D) at the lowest rates in thirty years for City debt issuance assisted by the use of ARRA Bond Programs, the City’s very strong bond rating, and extremely low interest rates.
The City was able to secure a combined interest rate of approximately 2.80% to fund $87.5 million of new capital needs. Proceeds will fund the renovation of community centers and libraries including Curtis Hall, the Shelburne Community Center, and the Brighton Branch Library as well as repairs to roads and bridges, traffic signal, street lighting and park improvements, and ongoing technology enhancements including a new computer aided dispatch system.
Additionally, the City refunded $66 million in prior debt (Series B) which resulted in a net present value savings of $3.5 million over the life of the bonds. Twelve firms participated in the sale which took place on March 18.
“This is another example of the City of Boston capitalizing on an opportunity to make the most of the stimulus package - Build America Bonds and Recovery Zone Economic Development Bonds are tools to help cities continue to move forward,” said Mayor Menino.
Moody’s Investors Service and Standard & Poor’s Ratings Services have affirmed their Aa1 and AA+ ratings, respectively. Standard & Poor’s considers Boston’s management practices “strong” under their management assessment methodology, indicating that the City’s financial practices are strong, well embedded, and likely sustainable.