Carson City gets ‘good’ bond rate for capital improvement projects
The $13.6 million bond issue for Carson City capital improvements, including downtown, is going to market at less than 3.7 percent over the life of the bonds.
City Manager Nick Marano and Finance Director Nick Providenti said the bond issue, which closes Dec. 17, will be at a true interest cost over the life of the 30-year issue of 3.68908 percent. They said debt service will require about $775,000 annually.
“Actual proceeds that can be used for construction will be $13,645,008.51,” said Marano. “Note this is more than the par amount of the bonds due to bond premium.” Providenti called these sound times for municipal borrowing because rates are low compared with other periods. He said capturing this rate is a plus.
“That’s pretty good,” he said, “especially for 30 years.”
The bonds are backed by a one-eighth of a penny increase in city sales tax collections, which amounts to about $1 million in annual revenues.
Planned use for the funding includes changing downtown to make what supporters call a pedestrian-friendly environment, part of the financing to help build a multi-purpose athletic center, most of the money for an animal shelter, later upgrades in business corridors outside the downtown, and enhancements for cultural purposes at the community center.
Marano and Providenti say the city’s overall bond rating from Standard and Poor’s is pegged at AA-minus, which the finance director called “pretty good for a small government.”