Lake Worth Beach Bonds Issued
The City of Lake Worth Beach issued two bonds in late summer and early fall of 2020; an Ad Valorem Bond providing $10,458,000 in project proceeds and a Combined Utility Bond providing $51,959,240 in project proceeds. These two bond series provided combined funding for City capital projects totaling $62,417,240.
In addition to providing funding for capital projects, the City took advantage of the historically low interest rate environment by paying off, or refunding, two Bank of America bank notes totaling $49,413,803 as part of the City’s Combined Utility Bond. As part of paying off these bank notes, the City also extended the repayment term, thereby reducing the annual debt service associated with these borrowing and as a consequence, providing increased budgetary and rate flexibility for the City’s utilities.
Another significant objective realized with the Ad Valorem borrowing is that the City was able to increase working capital and fund balances in the amount of $16,135,803. This was accomplished by reimbursing itself for capital projects otherwise paid from reserves. This step increased working capital and fund balance thereby providing the City additional financial flexibility while managing the negative impacts of COVID-19.
• The City completed these two bond issues with
Credit Agency Ratings of:
o Moody’s A2
o Standard and Poor’s AA
• Weighted Average Rates
o Ad Valorem
Tax Exempt 2.99%
Taxable 3.00%
o Combined Utility
Tax Exempt 2.89%
The income from these bonds is already being put to good use to fund projects throughout the City for the benefit of all Lake Worth Beach residents!
