City of Revere Secures Nearly $1 Million in Savings for Taxpayers
August 18, 2020
Credit Agencies affirm City’s Strong ‘AA’ credit rating as confidence in city economy remains steady
Tuesday, August 18, 2020 - Earlier this month the City of Revere successfully issued a $5,490,000 10-year general obligation bond, saving Revere taxpayers $962,462. The City received several competitive bids from underwriters, with BNY Mellon Capital Markets offering the winning 0.395% interest rate.
“When your city’s finances work your city works better for everyone,” Mayor Arrigo said. “I am proud of our finance team in keeping our city on track – driving our strong credit rating and keeping our city moving in the right direction even through these difficult times – a million dollars in savings is great news for our bottom line.”
Prior to the Bond sale, S&P Global Ratings affirmed the city’s strong ‘AA’ rating, citing the city’s strong economy, very strong budgetary flexibility and very strong liquidity as positive credit factors.
“As the city continues to move through the COVID-19 pandemic the issuance of these bonds help support the ongoing needs of our community,” Director of Finance and City Auditor Richard Viscay said. “While we may be losing revenue due to impacted businesses, our strong credit rating allows us to take advantage of historic interest rates helping to balance the scales.”
The City of Revere sells bonds to borrow money necessary for capital improvements. Due to favorable market conditions, the city issued general obligation bonds as a tool to reduce the interest rates that apply to outstanding debt. The five competing bids were accepted by the City’s Financial Advisory group, Hilltop Securities Inc. in Boston.