City of MLT completes utility bond sale
Piper Jaffray & Company completed a $5.145 million utility revenue bond sale for the City of Mountlake Terrace on Tuesday, Oct. 16, following City Council authorization on Monday. Money raised from the sale will be used to finance water, sewer and storm utility construction projects over the next two years.
“It was a very successful sale,” said Jane Towery, Managing Director of Piper Jaffray & Company who sold the tax-exempt bonds. “The city achieved a rate that I haven’t seen in years in the market; a 20-year bond at 2.33 percent.” Towery noted, “Mountlake Terrace reviews utility rates annually, and the city’s financials are very strong. These are the things investors are looking for.”
“It is a positive reflection that the sale was fast and our rates were low,” Assistant City Manager Scott Hugill said. “The City Council’s soundness and timing to go to the market saved the citizens of Mountlake Terrace a substantial amount of interest over the next 20 years when compared with our original forecast.”
Nancy Neraas, Bond Counsel from Foster Pepper, PLLC, remarked, “Since the fall of 2008, only solid rated municipalities like Mountlake Terrace have had very good access to the market. It’s important that you are well managed and run. You would have to go back 50 years to find interest rates as low as these,” Neraas said.
“The strong bond rating and favorable pricing for these bonds affirms the City of Mountlake Terrace is making sound financial decisions and is carefully managing its limited resources,” said City Manager John Caulfield.