City Expects to Float $15M in Bonds to Finance Capital Projects
(PHOTO: These capital project will be funding in part by a new bond issue.)
In a memo to the mayor and city council on Thursday, the city manager and deputy comptroller report Rye will need to issue bonds by Q1 2022 to finance various capital projects across the city.
Sewer projects, DPW improvements and police & court facilities are the three largest categories of capital projects that are expected to cost $26.9 million. Bond funding would be to the tune of $15 million – $1.68 million was previously approved in 2012 but never bonded and city staff will be seeking council approval to bond another $13.55 million. So bonding will cover 56.5% of funds and the remaining sources of funding will be $5.5 million (or 20.4%) from the CapEx reserve fund and $6.19 million (or 23%) from grants.
Projects will start this year using the cash reserves before bonding happens early next year. the. The city will take advantage of low rates “at an average interest cost of 1.1-1.4%; among the most attractive interest rates in 50 years” and will prepare the legal papers and meet with the rating agencies so it is ready later in the year should market changes warrant faster go-to-market for the bond.
Read the memo on the City of Rye CIP Financial Plan.
