The City of Wellington has saved itself a couple hundred-thousand dollars.
Earlier this year, the Wellington City Council authorized the sale of bonds for refinancing of current debt for the financing of two new projects - The Vandenburgh Street Project and Relief Sewer.
The bonds were sold yesterday (Tuesday, June 5), and the City received the good news.
There were five firms who placed bids on the 3.6 Million dollars of debt. The winning bid came from United Missouri Bank.
"Never in the history of my 30-years of being a financial advisor have I sold 10-year bonds at an average interest rate of 1.53 percent," John Haas, financial advisor, told the City Council during the June 5 meeting. "It doesn't get much better than that." The City staff and Council was more than happy to hear the winning bid.
The move saved the City approximately $280,000. Haas said there were bids coming in from a-typical locations.
"We're always excited to see other firms from out of state join in," he said. "That means that's there's a great interest in your bonds." The Council accepted the bid, passed an ordinance authorizing the issuance of the bonds, along with a resolution for other documents concerning the bonds. Haas also said the City's "A" credit rating was reverified.
"What that means is staff, and it's elected officials are doing a great job with The City of Wellington," he added. Haas also said Wellington capitalized on circumstance
"The world still is in crisis, there are certain benefits from all situations, and the benefit is people are rushing to your type of debt, and are willing to barrow and invest in your community at a very low interest rate," he said.