Alfred Pompeo, City Treasurer, received competitive bids from bond underwriters on Thursday, October 31, 2013 for a $3,700,000 20-year state qualified bond issue. Robert W. Baird & Co., Inc. was the winning bidder on the Bonds with an average interest rate of 3.24%. The City received a total of 4 bids. Bond proceeds will be used to finance high school pool repairs, the purchase of new fire trucks and DPW maintenance facility remodeling.
Prior to the sale, Standard & Poor’s, a municipal bond credit rating agency, upgraded the City’s long-term debt rating to ‘AA’ from ‘AA-’. The City will make use of the Qualified Bond local state aid intercept program, which is also rated ‘AA’ by Standard & Poor’s. The rating agency cited the City’s very strong and stable economic base, strong budgetary performance likely to be maintained over the next two fiscal years, very strong liquidity providing very strong cash levels to cover both debt service and expenditures and strong debt and contingent liabilities position as positive factors.
The bids for the Bonds were accepted at the offices of the City’s Financial Advisor, First Southwest Company, at 54 Canal Street in Boston, Massachusetts.