Mt. Prospect likes its rating for road bonds
Mount Prospect received a favorable interest rate — 2.35 percent — for the $6.5 million in bonds it sold to address the backlog in road repairs.
“That's about as low as we have seen,” said Finance Director David Erb.
The online competitive sale of bonds on the MuniAuction website was done over 15 minutes on Tuesday, when seven different firms placed 31 bids.
During the bidding, the village can watch who is bidding and the rates, but the bidders only see their relative place in the process. As a result, they lower their bids as the process moves along.
Robert W. Baird & Co. was the winner.
Mayor Arlene Juracek said, “Mr. Erb and the team did as well as any big corporation.”
Erb said Standard & Poor's affirmed the village's Double A-plus rating, “which we thought was outstanding, considering what is going on in the economy.”
He said Standard & Poor's considers the village strong in several categories, including budgetary flexibility, liquidity and management.