December 11, 2019 – Baton Rouge started MOVEBR with a successful bond sale, demonstrating the strong financial standing of the City-Parish. Mayor Broome’s administration finalized the sale of the first series of bonds this month.
On December 4th, the City-Parish issued $129,950,000 in bonds, providing the necessary funding to advance the MOVEBR program. The bond sale was over-subscribed by four times, meaning the demand for the bonds was four times greater than what was available. Due to the City-Parish’s strong financial management, these bonds were issued at an interest rate of 3.21% and received ratings in the AA category by Standard & Poor’s Global Ratings (S&P), Fitch Ratings (Fitch), and Moody’s Investors Services (Moody’s).
In addition, on October 16th, the East Baton Rouge Sewerage Commission (EBROSCO) refinanced $385 million in bonds at an interest rate of 3.46%. This amounts to a savings of $52 million over 26 years, or approximately $2 million per year in cash flow. The EBROSCO bond rating was affirmed in the AA category by S&P and Fitch. The savings will be reinvested in further infrastructure upgrades.
“Financial prudency is a priority for my administration. Our highly efficient government minimizes costs for taxpayers, ensuring maximum returns on their investment,” said Mayor Broome. “The facts speak for themselves, Baton Rouge is financially strong.”
These bond sales and bond ratings are a testament to the success of Baton Rouge’s strong financial management and sustainable policies. These bond rating agencies carefully examined the City-Parish’s tax base, financial policies, debt burden, and projected growth. The City-Parish is highly cognizant as to how decision-making impacts its financial standing with the rating agencies, and ultimately its borrowing costs. With responsible planning and deliberation at the forefront, Mayor Broome’s administration is making decisions that will benefit the City-Parish and taxpayers in the long-term.