Local news- Press Release
☷ Spring Hill Tennessee - City to Access Municipal Bond Market Ahead of Coming Rate Hikes
Spring Hill , state Tennessee ( By Press Release office)
CITY TO ACCESS MUNICIPAL BOND MARKET AHEAD OF COMING RATE HIKES
Like other cities with sound finances , Spring Hill can access the municipal bond market to help pay for capital - intensive roads , public works , and construction projects .
Given the near - certainty of multiple interest rate hikes this year , the City seeks to obtain funds sooner than originally planned to reduce the cost of money . Among the near - term objectives is construction on phase one of the Buckner Lane South widening project this summer . This time last year , a AAA - rated , 20 - year municipal bond paid approximately 83 basis points . A week ago , it was about 223 basis points . ( A basis point is 1/100
of 1 percent . )
Here is the approximate additional cost of financing Spring Hill’s proposed $40 million , 20 - year bond issue at higher rates:
10 basis points: $420 , 000
15 basis points: $633 , 000
25 basis points: $1 , 000 , 000
These funds can be accessed over multiple years . There are several important projects in the Capital Improvement Plan ( CIP ) , including a new police station , completion of the I - 65 interexchange , Bucker Lane , and improvements to the Buckner Lane/Port Royal Road intersection .
A notice detailing the Board of Mayor and Aldermen’s approval of this debt issuance was printed in the Tennessean newspaper .
The BOMA has adopted this approach . But Spring Hill residents can say no to bond issues . Residents have 20 days from the posting to present a petition signed by at least 10 percent of registered city voters .
Recently experienced rate increases with the certainty of increases in the near future provide good reason to access markets now rather than later .
The anticipated bond sale is May 11 .
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