Editor's note: The following is a press release from the City of Boston. While the city is funding a new library in East Boston, it still has no plans to renovate the .
Mayor Thomas Menino announced Thursday that the City has sold $232.1 million of general obligation bonds (Series A through C) via competitive sale. Eight different firms bid on the series.
The City was able to secure an interest rate of 2.46 percent to fund $122 million of new capital needs (Series A new money). These proceeds will help finance capital projects throughout the City’s neighborhoods, including a new library in East Boston, extensive work to the exterior of the Mattahunt School in Mattapan, new fire equipment, and the continued reconstruction of roadways and sidewalks citywide. Additionally, the City refunded $156.4 million of prior debt (Series B and C), which resulted in a net present value savings of close to $14 million over the life of the bonds.
“Our proven fiscal management has helped to keep Boston one of the strongest municipalities in the country, despite the challenges we’ve all faced over the last several years,” Menino said. “This latest investment in our public assets takes advantage of extremely low interest rates and makes it more affordable to support the projects that improve our neighborhoods. Together with all of the ongoing private development in the city, we’re well positioned for the years ahead.”
Both Moody’s Investors Service and Standard & Poor’s Ratings Services have affirmed their Aaa and AA+ ratings, respectively (registration required for links). The Moody’s rating reflects Boston’s strong financial position and the City’s substantial and economically diverse tax base.
“The City continues to thrive,” Menino said.