Mesa Garners $12 million in Savings on Bond Market
May 13, 2009 · Published By Admin
The City of Mesa announced today a $12 million savings in future interest costs related to the Utility System Revenue Bonds marketed and sold yesterday 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 percent 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.”
About Mesa, Arizona – The City of Mesa’s estimated population is over
460,000 within an incorporated area of approximately 133 square miles.
Total land area encompasses 182 square miles. The City ranks as the 38th most populous city in the United States, larger than the cities of Kansas City, Miami, St. Louis and Pittsburgh. Mesa is a favorite destination to thousands of visitors with more than 300 sun-filled days a year and average temperature of 72.6 degrees.
The area’s economy is driven by four major industries healthcare, education, aerospace, and tourism. Mesa is home to two award-winning airports, Phoenix-Mesa Gateway Airport and Falcon Field Airport. For more information about the City of Mesa go to mesaaz.gov
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