Politics & Government
Town Of Arlington: Town Nets Low Interest Rate Bonds
Arlington Town Treasurer, Phyllis Marshall, announced that the Town received competitive bids from bond underwriters on Thursday, Februa ...
02/07/2022 3:45 PM
Arlington Town Treasurer, Phyllis Marshall, announced that the Town received competitive bids from bond underwriters on Thursday, February 3, 2022, for a $82,445,000 30-year general obligation bond issue. J.P. Morgan Securities was the winning bidder on the Bonds with an average interest rate of 2.416%. The Town received a total of 7 bids on the Bonds. Bond proceeds will be used to finance various municipal purposes including the new High School and the Public Works Facility Project.
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“The historically low interest rate and the high cash premium we received and will use to reduce the amount the Town borrows will limit the amount put on the debt exclusion tax increase to our residents,” said Sandy Pooler, Arlington’s Deputy Town Manager/Finance. “I would like to commend Arlington Town’s Treasurer, Phyllis Marshall, her team, and our financial advisor, Hilltop Securities, for their efforts in securing this favorable rate.”
Due to the low interest rates and high premiums of out bond sales for the High School over the past three years, the amount of the debt exclusion tax increase is estimated to be $100 per year lower than the original estimates, based on an average single-family home assessment of $844,658
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Prior to the sale, S&P Global Ratings, a municipal bond credit rating agency, affirmed the Town’s long-term rating of ‘AAA’, the highest rating attainable. The rating agency cited the Town’s very strong economy, strong management with good financial policies and practices, strong budgetary performance, very strong budgetary flexibility, and very strong liquidity as positive credit factors.
The bids for the Bonds and Notes were accepted at the offices of the Town’s Financial Advisor, Hilltop Securities Inc., at 54 Canal Street in Boston, Massachusetts.
Preliminary Official Statement and Notice of Sale Dated January 25, 2022
This press release was produced by Town of Arlington. The views expressed here are the author’s own.
