Ehlers

PRESS RELEASE

September 20, 2010

For Immediate Release

Media Contact:

Tim Schram

Ehlers

800.552.1171 ext. 8533

 

 

Debt Refinancing Saves City of New Berlin Taxpayers

Over $849,000

City's Aaa Bond Rating Affirmed by

Moody's Investor's Service

 

BROOKFIELD, WI - September 10, 2010 - In an continuing effort to integrate modern living with small-town charm, the City of New Berlin recently was awarded the sale of $15,630,000 in General Obligation bonds and notes.  Saving City taxpayers $849,162 by issuing $8,085,000 in bonds to refund existing City debt at lower interest rates, the balance of $7,545,000 in notes is being issued to pay for costs of capital improvements to include street and park improvements, and acquisition of capital equipment.  Competitive bids for purchase of the bonds and notes were taken by Ehlers & Associates, the City's independent financial advisor.

  

"The notes and bonds were sold in August and closed on September 8, 2010," stated Greg Johnson, Financial Advisor at Ehlers. Johnson continued, "The competitive sale process Ehlers recommends, combined with the City's excellent credit rating, proved valuable to the City." 

 

A total of five bids on the notes and ten bids on the bonds were received, including:  

  • Purchase of $8,290,000 in tax-exempt General Obligation Refunding bonds by BMO Capital Markets at a TIC of 2.06%, resulting in refinancing savings of $849,162 for City taxpayers.
  • Purchase of $7,545,000 in tax-exempt General Obligation Notes by Baird at a TIC of 1.94%.

As part of the debt planning and issuance process, the City's Aaa bond rating was reviewed and affirmed by Moody's Investors Service.  "The Aaa rating, the highest assigned, indicates the outstanding credit quality of the City of New Berlin" observed Johnson. 

 

In its credit report, Moody's acknowledged the City's "historically strong management", its "conservative budgeting," and "healthy reserves" as positive factors leading to the rating affirmation.  The City of New Berlin is one of five communities in Wisconsin with a Aaa rating.

 

About the City of New Berlin  

The City of New Berlin (http:/www.newberlin.org) is located in Waukesha County, Wisconsin. The City was honored as ranking 34th on Money Magazine's Top 100 Best American Small Town in Which to Live in 2009.  The 2009 population estimate for the City is 39,300.  Known as the "City Living with a Touch of Country," it is approximately 37 square miles and has a tax base worth nearly $4.8 billion.  The City has taken advantage of its location and access to I-94 and I-43 through development at the New Berlin Industrial Park and the Westridge Business Park, diversifying the City's tax base.  The City's industrial areas are comprised of more than 600 businesses and 13,000 employees.   

 

 

About Ehlers 

Ehlers, an independent public finance advisor for over 50 years, is ranked third nationally in number of competitive sales advised. Our goal is to expand public sector clients' horizons and achieve practical solutions at the lowest cost to taxpayers. Our allegiance is to the communities whom we serve. Our success is the result of established long-term relationships, hard work, and years of experience. Ehlers works with counties, cities, townships, school districts and other governmental units to build better communities through the products and service we offer: Debt Issuance Services, Economic Development and Redevelopment, Financial Planning, and Management, Communication and Public Participation. Visit http://www.ehlers-inc.com/index.php for more information.

 


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