Peabody’s general obligation municipal purpose loan nets very low 2.042% interest rate

10 Apr

The following press release was sent to The Eye by Mayor Ted Bettencourt’s office.

From the Mayor’s Office

Mayor Edward A. Bettencourt, Jr., is pleased to announce that the City of Peabody received competitive bids from bond underwriters on Wednesday, April 3, 2013, for $10,533,000 General Obligation Bonds.

Bank of America Merrill Lynch was the winning bidder on the Bonds with an average interest rate of 2.042%.  Bond proceeds will be used to finance Library Building Improvements, Water Treatment Plant Upgrades, Flood Mitigation, as well as to refinance bonds of the City dated February 1, 2005.  The refinancing will generate total savings of $327,327.

Prior to the sale, Moody’s Investors Service, a municipal credit rating agency, affirmed the City’s “Aa1” long-term debt rating. The agency cited the City’s sizable and diverse tax base, unused levy capacity, and stable financial position as positive credit factors.

“We’re obviously very pleased with the results of this bond sale,” said Mayor Bettencourt.  “Peabody’s strong ‘Aa1’ credit rating and the continuing low interest rate market enable us to make critical infrastructure upgrades while saving taxpayers tens of thousands of dollars in interest charges.”

The bids for the bonds were accepted at the office of the City’s financial advisor, First Southwest Company, at 54 Canal Street in Boston, Massachusetts.

5 Responses to “Peabody’s general obligation municipal purpose loan nets very low 2.042% interest rate”

  1. Anon April 10, 2013 at 5:31 pm #

    “Unused levy capacity”!
    With the twenty plus years of conservative spending by Peter T (not giving into the city unions) and the give aways by Big Mike. We still have “unused levy capacity!
    Now with the new mayor let the BIG spending begin! Raises for everyone: the Mayor, City Council, School Committee ( don’t forget the brand new pensions for the school committee). Who knew?
    Add a few new school projects and there goes Peter’s legacy: Stable taxes even with impact of Prop 2 1/2 in the 80’s.
    Homeowners watch your wallets! You clearly are not paying enough! Big spenders=Big 6 figure salaries for more public servants are a coming….

    Bob,
    Let’s put a BIG spin on this one!

    Savings of $300K Great job! You got to be kidding.

  2. Graying Goose April 11, 2013 at 8:23 am #

    Seems to me it would be hard to “spin” this bond and credit rating story as anything but good news for Peabody residents. The poster above must be missing the daily string of headlines from other municipalities around the state and the country reporting dismal financial chaos. Peabody’s finances continue to be stable and strong and its tax rate among the lowest in the state.

    I lived in Peabody back when Peter T was the mayor (retired part time in Tampa now) and I remember he heard the same sniveling when he reported on Peabody’s financial strength. The sniveling was tired then and it’s really tired now. And the whining and the self pity its unbecoming. I might recommend working to improve your lot in life rather than wasting so much energy complaining that others have it so much better than you.

    After all you are free to live in another community if you don’t like living in one which has its financial act together.

  3. the Outfront Guy* April 11, 2013 at 10:49 am #

    OG says..hey Gray Goose….would it be fair to state that the Emperor liked to simply save money and Teflon Ted appears that he is more willing to invest (spend) money on much needed things?? ( oh and by the way Absolut is the best vodka when you compare price and quality to the Goose )

  4. anonymous April 13, 2013 at 12:12 pm #

    Read in the snews today Ted spiliotis and the rest of the reps are putting through a big tax increase. This ones a whopper. They are tying the gasoline tax to the consumer price index. What a royal screwing. This means the gas tax will get raised every year! These Democrats are really trying to destroy what’s left of the economy. I can’t wait until next year to vote them out.

  5. Joseph Maio June 13, 2013 at 9:49 am #

    Here we go again Mayor Bettencourt! Flooding in west Peabody. Going to put some sandbags and a berm to hold back the water. You are an expert in sandbags so i gues that makes you a sandbagger?That is right it has been done twice did not work! 4 months For Richard Marchese to comply with the Fake cease and desist order you and the zoning board put in place. No mitigation plan and not one once of dirt removed to bring it to grade.

    If you think I am crazy check out the video below of the destruction at the behest of Ted AKA Ed Bettencourts rule of no rules. Take a look be the judge pictures speak louder than word . Listen a 14 year old boy describes what is happening a despicable. Here the YouTube LInk

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