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Local News

January 25, 2013

City sells $5.5M in bonds

Bonds sold this week for the city of Oneonta have an effective 2.61 percent increase rate, Finance Director Meg Hungerford said.

The city sold $5.5 million in bonds at a sale Wednesday, Hungerford said. The bonds are for capital projects in 2011, 2012 and 2013, including improvements in the Dietz Street parking lot, the municipal garage and Spruce Street, she said.

Some street projects, including work on Spruce Street, will be done this year, she said, and the other capital projects are done or substantially completed.

The city’s bond rating earlier this month by Standard & Poor’s of “A plus’’ with a “stable outlook’’ had “an important part in getting a good interest rate,’’ she said.

“I was very pleased with the rate,’’ Hungerford said Thursday. “I’m excited.’’

The city had an “A plus’’ rating with a “negative outlook’’ when it sold bonds in 2010.

The city bought the bonds Wednesday with assistance from Fiscal Advisors & Marketing, which previously estimated the city might glean an interest rate of 3.95 percent, Hungerford said.

To put the current rate into perspective, Hungerford said, the city’s other outstanding bonds range from 3.75 percent to 6 percent.

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