On Wednesday, Bloomfield Township closed on the sale of $4,270,000 par value of Special Assessment Limited Tax General Obligation bonds, Series 2025A maturing in April 2045.
The Township received seven qualified bids for the bonds through a competitive sale process, and BOK Financial Securities, Inc. was the low bidder at a true interest cost of 3.54% and was awarded the sale.
As part of the bond sale process, S&P Global Ratings reaffirmed its AAA rating on the Township’s bonds, leading to an increased number of bidders and resulting in the market leading pricing on the bonds.
In its Summary Report, dated January 16, 2025, S&P highlighted the Township’s “thorough, forward-looking financial management policies and practices” and its “consistently positive operating performance supporting its healthy reserve and liquidity positions, and robust management practices”.
Township Treasurer Michael Schostak noted that “S&P’s reaffirmation of our AAA credit rating is testament to the prudent, conservative financial practices of the Township, including keeping operating costs down and paying down long-term liabilities. There is direct savings to the residents of the Township as a result of the AAA rating, in this case amounting to about $130,000 in lower borrowing costs over the life of the bonds. We are gratified by achieving this rating.”
The proceeds of this bond offering will fund the water main installation project currently underway in the South Bloomfield Highlands neighborhood of the Township, and the residents of that neighborhood will pay a special assessment for twenty years to repay the bonds.
To read the S&P Global Ratings Summary in its entirety, visit the Township website at https://bloomfieldtwp.org/government/open-transparent-government/bond-rating.
The Township received seven qualified bids for the bonds through a competitive sale process, and BOK Financial Securities, Inc. was the low bidder at a true interest cost of 3.54% and was awarded the sale.
As part of the bond sale process, S&P Global Ratings reaffirmed its AAA rating on the Township’s bonds, leading to an increased number of bidders and resulting in the market leading pricing on the bonds.
In its Summary Report, dated January 16, 2025, S&P highlighted the Township’s “thorough, forward-looking financial management policies and practices” and its “consistently positive operating performance supporting its healthy reserve and liquidity positions, and robust management practices”.
Township Treasurer Michael Schostak noted that “S&P’s reaffirmation of our AAA credit rating is testament to the prudent, conservative financial practices of the Township, including keeping operating costs down and paying down long-term liabilities. There is direct savings to the residents of the Township as a result of the AAA rating, in this case amounting to about $130,000 in lower borrowing costs over the life of the bonds. We are gratified by achieving this rating.”
The proceeds of this bond offering will fund the water main installation project currently underway in the South Bloomfield Highlands neighborhood of the Township, and the residents of that neighborhood will pay a special assessment for twenty years to repay the bonds.
To read the S&P Global Ratings Summary in its entirety, visit the Township website at https://bloomfieldtwp.org/government/open-transparent-government/bond-rating.
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