For the first time ever, the City of Plainfield will offer $11.7 million in short-term notes in an online auction taking place today, Thursday, November 3.
Proceeds of the note sale will be used to fund projects recently approved by the City Council, including construction of a new Senior Center [$4M], work on the Rushmore and Seidler swimming pools [$504K], and road reconstruction and resurfacing projects [$5.5M]. The remaining funds will be used on various capital items, including the purchase by the City of specialized road maintenance and resurfacing equipment, allowing the Division of Public Works to play a more active role in road maintenance.
"This is an exciting moment for the City," says Mayor Al McWilliams, "not only because we are participating in our first online auction, but because we just received a favorable rating letter from Moody's Investors Service."
"The letter notes the steps taken by my Administration to improve our financial situation through better management, a plan to build long-term reserves, and a stabilization of our $2.27 billion tax base.
"Further, while our rating of MIG1 for these notes is excellent, we are also encouraged that the rating letter, which gives the City an investment grade rating of Baa3, states that 'Moody's believes that audited fiscal 2005 results in line with unaudited estimates will likely result in a rating upgrade,' the Mayor concluded."
These ratings mean the financial community is regarding Plainfield in a better light because of improvements in the handling of the City's fiscal affairs (tax collection rate, building up of surplus, stabilization of tax base), and the City's bonds will be more desirable, making them easier to sell and at a more advantageous interest rate.
Plainfield's Director of Administration and Finance Ron West explains that in an online auction, the auction will take place, the winner be deternined and the interest rate set--all on the same day, November 3. The sale of the notes is expected to close on November 10, with delivery of the proceeds to the City.
The auction is online at Grant Street / MuniAuction: https://www.grantstreet.com/
Keywords: Plainfield, government, finance, technology
