City to save on interest for bonds - East Valley Tribune: Mesa

City to save on interest for bonds

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Posted: Thursday, May 7, 2009 8:41 pm | Updated: 1:23 am, Sat Oct 8, 2011.

A bond program under the federal stimulus package has proven to be beneficial for Mesa.

City officials say they expect to save $12 million in interest over 25 years on bonds sold to pay for future utility capital improvement projects. The savings come from the Build America Bond program, part of the economic stimulus, under which local or state governments issuing the bonds receive a 35 percent subsidy on interest.

Mesa will invest the nearly $60 million in bonds on water, sewer, natural gas and electric infrastructure projects. It’s the first municipality in the state and one of the first nationally to use the program.

Mesa also received a better interest rate than last year, by two-tenths of a percent, in its General Obligation bond sales of $61.8 million. Monies raised from these 2008 voter-approved bonds will be used for public safety and street improvements projects.

The city’s bond rating by Moody’s remains the same.

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