Ocean City bond sales attract national interest

Ocean City sold $16,760,000 worth of bonds to help fund water infrastructure in the town.  This will include adding the “Beach Ball” water tower on 1st street.  What doesn’t go to the tower will go to a wastewater secondary clarifier, the electrical service to a wastewater treatment plant, and wastewater mains.

The General Obligation Municipal Purpose Bonds were sold at a true interest cost of 2.639 percent to Raymond James & Associates, a financial group based in Memphis, TN.

Prior to the sale – Standard & Poor’s Ratings Services assigned is “AA/Stable” rating to the bonds and affirmed its “AA” rating on the towns already existing GO debt.  The rating is based on the town’s strong financial management polocies and practices and very strong liquidity.  The overall debt is at 1.4% of market value.  These reasons were what brought the nationwide competition.

The bonds will mature starting this time next year – all the way through December 2035.