Annapolis GOs Ahead

Annapolis expects to competitively sell $27 million of general obligation public improvement bonds tomorrow.

The bonds will mature between one and 20 years and are rated AA-plus by Fitch Ratings. Additional ratings were not available by press time.

Proceeds from the bonds will fund various construction projects for infrastructure, school, and recreation facilities.

Annapolis had $58.7 million of debt outstanding as of June 30, 2008, with a debt-to-assessed-property value of 1.02%. The ratio increased from 0.81% in fiscal 2007. The city had a 9.15% ratio of annual debt service expenditures to operating revenues at the end of fiscal 2008.

The city said it expects to issue about $25 million of public improvement bonds in the next two years. Its last deal was financed in August 2007 and had a total interest cost of 4.27%, according to data from Thomson Reuters.

Annapolis, Maryland’s capital and the home of the U.S. Naval Academy, reported a 5% unemployment rate through the first three months of 2009 — lower than that of Anne Arundel County, where it is located, and Maryland’s overall rate.

McGuireWoods LLP of Baltimore will be bond counsel. Davenport & Co. will be financial adviser.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER