City Treasurer/Collector Caputo received two competitive bids from bond underwriters on Thursday, October 22, 2020 for a $39,475,000 20-year general obligation bond issue. Fidelity Capital Markets was the winning bidder on the Bonds with an average interest rate of 2.0710%. Bond proceeds will be used to fund various school and municipal projects.
Prior to the sale, S&P Global Ratings, a municipal bond credit rating agency, affirmed the City’s ‘AA-’ underlying long-term bond rating. The rating agency cited the City’s very strong management, with strong financial policies and practices, very strong liquidity, very strong debt and contingent liability profile, and strong institutional framework as positive credit factors. Furthermore, S&P Global Ratings assigned the ‘AA’ enhanced rating to the Bonds as debt service is secured by the State Qualified Bond Act local state aid intercept program.
Mayor Sarno states, “I extend my appreciation to CAFO TJ Plante and Treasure Chris Caputo and their entire finance team for their hard work and dedication to my administration’s continued commitment to fiscal excellence, transparency, sound fiscal practices, and accountability. Since taking office, my administration has been committed to establishing a long-standing resiliency by maintaining core services, personnel and continued investment in our city’s future, even while preparing for a possible economic downturn within our nation, much like what we are currently experiencing with this COVID-19 Coronavirus pandemic. We will continue to be prudent and with compassion while managing our city’s finances as we move forward during these uncertain times.”
CAFO Plante stated, “The city continues to strive for financial excellence along with strong and sound fiscal policies and practices, even during these challenging times. This bond transaction will help fund future projects throughout the city while maintaining our commitment to our financial obligations.”
Treasure Caputo added, “This sale of our municipal bond will assure that the City, under the sound fiscal management of Mayor Sarno and CAFO Plante, will continue to honor our financial obligations while building for our future. To have our municipal bond rating confirmed as strong and sound is a testament to our financial team, especially during these challenging times.”
Bids for the Bonds were accepted at the offices of the City’s Financial Advisor, Hilltop Securities Inc., at 54 Canal Street in Boston, Massachusetts.