City receives 2.89 percent rate of sale for bonds

Mark Jinks (Courtesy photo)

After recently having its bond ratings reaffirmed in July, the city announced on Monday that it has secured low interest rates on the sale of new general obligation bonds.

The city issued $40.9 million in tax-exempt bonds on July 25, according to a city news release, which went toward schools, Metro, parks and public buildings. The bonds, which will be repaid over 20 years, were sold at a true interest cost – a term that refers to total cost of the debt, including interest payments and fees – of 2.89 percent to financial services firm Robert W. Baird & Co. The city said it received 12 bids in all.

The 2.89 percent true interest cost is, however, higher than last year’s. The city news release attributed that to rising market interest rates.

“We are proud of the strong credit ratings that made these low interest rates possible,” City Manager Mark Jinks said in a news release. “Our receipt of 12 very competitive bids reflects our sound financial management and the good work of city staff.”