City Sells Nearly $50 Million in Bonds to Fund Capital Improvement Projects
April 29, 2021
Taxpayers in Albuquerque once again benefitted from good financial management at the City of Albuquerque. The City sold $49.9 million par value bonds through competitive sale that included $22.9 million in Series 2021A General Purpose Bonds, and $27 million in Series 2021B Refunding Bonds. The City will invest funds generated from the sale of the bonds into capital improvement projects outlined in legislation passed by City Council in March, and to pay off higher interest bonds to save taxpayer dollars.
Due to favorable market conditions, strong financial management, and a ‘AAA’ rating from Standard & Poor’s (S&P), the City achieved an overall interest cost of 0.99% on the sale of the bonds. ‘AAA’ is the highest rating assigned by S&P Global Ratings, meaning the City’s capacity to meet its financial obligations is extremely strong.
“Good financial management of taxpayer dollars allows us to invest in much-needed projects in public safety, street improvement, and community enhancements for our quality of life,” said Mayor Keller. “Our team is dedicated to maintaining these high standards for the stewardship of public funds so our residents can benefit for years to come.”
The ordinance that passed City Council in March allowed for the issuance and sale of the bonds, and lays out the investments to be made for specific projects, including:
- Community Centers and Community Enhancement
- Parks and Recreation
- Street improvements
- Public safety
- Library
- Museum and cultural facilities
- Affordable housing
"We’re very pleased with the positive outcome of this bond sale, and the savings of almost $2 million in interest by refunding the bonds was at least $200,000 higher than anticipated,” said Chief Financial Officer Sanjay Bhakta. “We are looking forward to putting these dollars to work for the people of Albuquerque.”
There were 28 bids from 12 bidders with Fidelity Capital Markets submitting the winning bid. The TICs for General Purpose Bonds and Refunding Bonds were 1.303% and 0.424% respectively.