City of Brookline saves $337,000 by refinancing bonds

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BROOKLINE, MA – The City of Brookline saved $337,347 by refinancing bonds after Moody’s Investors Service reaffirmed the city’s coveted AAA bond rating, according to City Administrator Mel Kleckner and the Acting Chief Financial Officer and Treasurer Justin Casanova-Davis.

In late February, Moody’s reaffirmed Brookline’s exemplary AAA bond rating – the highest long-term rating provided by the agency – citing the city’s large tax base, very strong resident wealth and incomes, comprehensive tax policies and planning and taxpayer support for general tax waivers. and debt exclusions as positive credit factors.

On March 2, the city received competitive bids from bond and note underwriters for a general 20-year bond of $21.75 million, as well as an anticipated one-year bond of $4.87 million. .

Fidelity Capital Markets was the winning bidder on the bonds, with an average interest rate of 1.728%. Oppenheimer & Co., LLC was the successful bidder for the Notes, with a net interest cost of 0.989%. There were six bidders on the bonds and five bidders on the notes.

“I am pleased to report to the ratepayers of Brookline that our efforts to proactively and responsibly manage the city’s finances have once again paid off as our highest possible bond rating has been reaffirmed, which which resulted in direct cost savings,” Kleckner said in a statement. . “I want to thank Justin and the entire city finance team for their outstanding work.”

The bonds and notes will be used to fund the City Assembly-approved settlement in the Gerald Alston case, various city projects and the refinancing of bonds originally issued in 2012. The refinancing of the 2012 bonds will allow the city to save $337,347 over remaining life. of these obligations.

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