Erie sells bonds for construction of buildings
Last Updated: 13:18 May 30, 2014
The interest rate of the general obligation bonds is 3.24 percent, according to Steve Felten, the town's finance director. Voters had approved in April a bond rate up to 5 percent.
Standard & Poor's has rated the bonds AA+, one level below its highest AAA rating.
The ballot question that was approved established the maximum debt allowable of $6.2 million with a total repayment cost not to exceed $11.6 million. With this bond sale, repayment cost will be $9.8 million.
For a homeowner with a residential property valued at $300,000, it is now expected that property taxes will increase by roughly $22 per year. This amount is lower than the $36 per year amount previously estimated by the town.
"This is a long-term investment with an immediate benefit to the community," said Tina Harris, mayor of Erie. "We promised Erie citizens a good value for their investment, and this is the first phase in delivering on that promise."
Stifel, Nicolaus & Co. Inc. were underwriters for the bonds, and Butler Snow LLP served as bond counsel.
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