WESTFIELD – The City is preparing to sell two bonds, one for new projects and the other to refinance an existing bond at a lower interest rate, at the perfect time as the bond rating company, Standard and Poor’s Rating Service has confirmed an extremely attractive ‘AA’ bond rating and a short term borrowing rating of SP-1+.
City Treasurer Meghan Kane said the city is prepared to sell a long-term bond in the amount of $5,580,000 and a short=term bond in the amount of $5,087,646.
“The long-term bond is not new debt. It’s to take advantage of lower interest rates now available, so it current long-term debt that we’re refinancing,” Kane said.
Standard & Poor’s performed the review as the city prepares for the conversion of short-term borrowing to long-term borrowing on the senior center project and prepares for installation of a new radio communications system allowing all operations to interact more effectively.
Kane said the short term bond is to finance construction of the 20,000-square-foot senior center at Mary Noble Estates on Noble Street. The work is nearly completed and a formal ribbon cutting ceremony slated for December 13, 2015. A soft opening of the center is currently underway to ensure systems are operating to design parameters.
The City Council voted at its Sept 3, 2015 meeting to approve a bond request in the amount of $2,150,000 for the acquisition of a city-wide radio communication system. Ward 2 Councilor Ralph Figy said the communication system would expand coverage across the city and provide both internal and external departmental communication between the Police, Fire, Public Works, Water, Emergency Dispatch and Emergency Management departments.
Mayor Daniel M. Knapik said that the city’s reserve funds have increased from $3.5 million in June of 2009 and that during the past six years, working with the City Council, the reserve funds now approach $10 million, a factor in the high rating issued by Standard and Poor’s.
“Working with the City Council, there is about $10 million in reserve accounts as I walk out the door, and while increasing those reserve funds, the council and I have still made major investments to improve the city,” Knapik said. “And while we were doing that our bond rating has been increased two or three times.”
Knapik said the rating agencies support conservative fiscal policies, “with balanced operating results in the general funds and a slight operating surplus at the total governmental fund level.
“Ratings agencies continue to view Westfield favorably,” Knapik said. “Our financial team has helped me tremendously as we have made vital investments in Westfield’s capital assets while continuing to fund the general obligations of government. As my term comes to a close, I am proud of all that we’ve accomplished together.”
