Competitive 3.86% and 3.81% true interest costs attributed to “Triple A” credit rating from Moody’s and Standard & Poor’s.
The City of Richardson held an order period for its 2024 Bonds and 2024 Certificates of Obligation on Monday, April 22, with priority granted to individual investors and Richardson residents. In total, the City issued $67,530,000 in general obligation bonds and $20,955,000 in certificates of obligation.
The general obligation bonds had a true interest cost (TIC) effective rate of 3.86 percent, while the certificates of obligation had a TIC rate of 3.81 percent. The low interest rates are attributable to the City’s “Triple A” status from both Standard & Poor’s and Moody’s, a status the City has held for the past 15 years.
“We are happy with the interest rates we received, which are the result of our ‘Triple A’ ratings and the importance we put on being responsible stewards of taxpayer money,” said City Manager Don Magner. “These low rates allow us to allocate the maximum amount of tax dollars to projects and reflect the hard work our City Council and City staff put in daily to ensure we offer the best services possible to Richardson residents.”
In the rational for awarding Richardson a AAA rating, Standard & Poor’s cited:
- Richardson’s diverse, growing and robust economy
- A strong financial position that is supported by comprehensive financial policies and practices
- Historically strong budgetary practices
In the rational for awarding Richardson a Aaa rating, Moody’s cited:
- A strong history of operating performance
- An established history of maintaining Aaa level reserves
- Economic expansion supported by institutional and corporate presence that drives high income and wealth levels
- An experienced management team
The 2024 bonds include funding for street improvements, municipal public buildings, parks, sidewalks and drainage projects. The 2024 certificates of obligation will help fund water and sewer projects, and renovations to the Library. The remaining funds will be used for solid waste equipment and fire equipment.
About the City of Richardson
The City of Richardson is a city proudly built by engineers and entrepreneurs, with a history of technological leadership and a bright future fostering the next generation of innovation. Repeatedly named one of the best cities in America to live, work, and start a family, the City of Richardson offers a high quality of life, a diverse array of neighborhoods, excellent schools, convenient Metroplex location, multi-modal transportation infrastructure, and outstanding City services. The City remains dedicated to continuous improvement, as well as to the principles of open government and two-way communication with residents.
