City Amassed $12 Million In Savings On The Bond Market

The City of Mesa announced a $12 million savings in future interest costs related to the Utility System Revenue Bonds marketed and sold May 6th, on the bond market. These savings will be realized over the term of the bonds.The savings is directly tied to the new Build America Bond (BAB) stimulus program in which the City is reimbursed by the Federal Government for 35% of the interest costs.“We are pleased with the results of the bids.” Mayor Scott Smith said, “We are the first municipality in the State of Arizona and one of the first in the country to take advantage of the Build America Bond program. The future interest expenses savings will allow the City to continue our goal of completing needed facilities and meet the future needs of our customers.”The $59,900,000 in Utility Revenue Bonds will be used for the City’s water, wastewater, natural gas and electric infrastructure capital projects.The City’s General Obligation Bond sales were also sold successfully on the market at two-tenths of a percent less than last year’s rate. The $61,830,000 in General Obligation Bonds will be used to construct police, fire, and streets projects over the next 12-months approved by the voters in November 2008.“Six months ago the municipal bond market was in disarray and the new Build America Bond program was nonexistent.” City Manager Chris Brady said. “The market was very favorable and our residents will reap the benefits.”