Royal Oak is expected to sell $11.8 million of capital improvement bonds in a competitive sale scheduled for next week. The bonds will finance various capital improvement projects across the Detroit-area city, including water and sewer system upgrades.
The limited-tax bonds are secured by a limited ad valorem tax pledge. The city has roughly $38 million of outstanding limited-tax general obligation bonds currently outstanding.
Despite weakness in the regional economy, Royal Oak has managed to maintain a solid fiscal profile, according to Fitch Ratings, which assigned a AA-minus rating with a stable outlook to the upcoming bond issue.
