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$232 Million City Bond Sale Funds East Boston Library, Other Projects

Proceeds will help finance capital projects, 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.

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.

Phil Lindsay March 16, 2012 at 01:22 PM
Was any of this for fixing up Franklin Park? There is still a lot of work needed to be done to restore the paths and forests to their former glory.
Don Haber March 16, 2012 at 01:26 PM
The new East Boston library is budgeted to cost $17.4 million. It would take less than half that amount ($8.5 million) to renovate and expand the JP Branch Library.
Gretchen Grozier March 16, 2012 at 01:37 PM
Other cities (Philly, Seattle) have created bonds between $175-$196 million to fix up ALL their branch libraries in one big program. It's amazing that Boston, the home of the first public library system in the world can't figure out how to do this too!! And why is JP (with such good usage) getting the shaft?
Judy Neiswander March 16, 2012 at 02:11 PM
Not that the JP library doesn't need help, but the current East Boston library is really a hole.
Chris Helms (Editor) March 16, 2012 at 02:13 PM
I saw in the Gazette this morning that the JP Branch is slated to get an $125 million "fix up" instead of a real renovation. Here's the link: http://jamaicaplaingazette.com/2012/03/16/jp-branch-to-get-fix-up-but-not-full-renovation/
Eli on Green March 16, 2012 at 09:14 PM
$125 million "fix up"? Maybe $1.25 million. $125 million would build a pretty amazing library.
Chris Helms (Editor) March 17, 2012 at 02:35 PM
Thanks, Eli! Obviously I goofed. It's a $125,000 fix up. Thanks for the catch.
Peg Moloney March 18, 2012 at 12:56 PM
Please call/email the Mayor and City Councillors and ask them to include funding for a complete renovation and expansion of the Jamaica Plain Branch Library in the 2013 capital budget. Our library has been ignored for too long; a fix-up won't do the job. Peg Moloney

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