By Jill Terreri
The city borrowed $33 million on Wednesday for major capital projects at rates of less than 2 percent.
The city's strong credit ratings drew 18 bidders for $33 million in short- and long-term bonds the city sold to finance upgrades at Coca-Cola Field, the Buffalo Zoo and Erie Basin Marina, among other items. In prior years, only six firms had bid on city bonds.
The city borrowed $25.6 million in long-term bonds at an interest rate of 1.88 percent, and sold $7.4 million in short term notes at a rate of .29 percent. Both interest rates were less than what the comptroller's office expected.
"Buffalo's rising bond ratings, as well as favorable market conditions have resulted in outstanding interest rates for the city," said Comptroller Mark J.F. Schroeder.
The city has credit ratings of A+ from Standard & Poor's, A1 from Moody's and A+ from Fitch.
The long-term bonds, which will mature in nine years, were purchased by Guggenheim Securities, one of 13 bidders. The short-term bonds, which are one-year notes, were purchased by Raymond James.
The borrowing will cover about two years worth of capital projects, those ready to be bid out this year, and projects from prior years that were not ready in the past.
taggedCity of Buffalo | city spending | Mark Schroeder