BEVERLY HILLS—In the time span of less than an hour, the City of Beverly Hills was able to sell $62.2 million worth of lease revenue bonds. The bonds garnered the highest possible lease rating for any California city, allowing the bonds to be among the first sold in California without a reserve fund.
Praising the quick sale of the bonds, Mayor Jimmy Delshad proclaimed, “Our Smart City initiatives and sound financial practices have helped us to keep our underlying AAA rating. Investors want low risk now more than ever and this record sale of bonds underscores the financial strength of Beverly Hills and the confidence the market has in our prudent fiscal policies.”
The bonds that Beverly Hills generally release are used to fund major construction projects, and long term financial obligations. The gained revenue from these particular bonds is slated to be used in funding the city’s Alternative Retirement Medical Program & Other Post Employment Benefit. The bonds will also be used in the construction of an underground parking structure at 455 N. Crescent Drive and the purchase of an office building at 239 S. Beverly Drive.
Even with tough economic conditions affecting many other California cities, Beverly Hills was able to obtain a low-blended interest rate of 4.15 percent, a low rate that will save Beverly Hills taxpayers millions of dollars over time.