MUNICIPAL FINANCE
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Mission Viejo profits from city bonds sale
The South County city adds nearly $800,000 through $17.3 million sale and savvy market timing.
Tamirra StewartPublished: December 14, 2009 11:30 AM
Strategy and financial savvy on the part of the Mission Viejo City Council resulted in almost $800,000 in savings for the city last Wednesday, following the successful sale of $17.3 million in City Lease Refunding Bonds.
The bonds were authorized by the City Council on Nov. 16 and were slated for sale on Dec. 1. However, due to higher interest rates at the time, the sale was delayed. Through daily monitoring, the city timed the sale, struck while the financial iron was hot and acquired 4.4 net present value (NPV) savings, which added $769,468 to the city. By timing the market, Mission Viejo was able to exceed its 4 percent NPV goal recommended by the city’s Investment Advisory Commission and approved by the City Council.
“Our city was proactive in its efforts and actually exceeded our savings goal for the betterment of city coffers,” said Mission Viejo Mayor Frank Ury. The local official gave kudos to the committee for its “diligence and sound advice.”
The bonds were originally issued to finance the purchase and construction of the public library and City Hall.
Related headlines
Mission Viejo nets $285,100 in federal funds for city pathway
Mission Viejo expected to receive $2 million in funding
Mission Viejo's credit rating jumps to AAA status
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The bonds were authorized by the City Council on Nov. 16 and were slated for sale on Dec. 1. However, due to higher interest rates at the time, the sale was delayed. Through daily monitoring, the city timed the sale, struck while the financial iron was hot and acquired 4.4 net present value (NPV) savings, which added $769,468 to the city. By timing the market, Mission Viejo was able to exceed its 4 percent NPV goal recommended by the city’s Investment Advisory Commission and approved by the City Council. “Our city was proactive in its efforts and actually exceeded our savings goal for the betterment of city coffers,” said Mission Viejo Mayor Frank Ury. The local official gave kudos to the committee for its “diligence and sound advice.” The bonds were originally issued to finance the purchase and construction of the public library and City Hall. Related headlines Mission Viejo nets $285,100 in federal funds for city pathway Mission Viejo expected to receive $2 million in funding Mission Viejo's credit rating jumps to AAA status |
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