The City of Brentwood went to the bond market on Tuesday, August 30, 2011 for two bonds issues. The first was a $5 million General Obligation bond issue with the proceeds to be used for the final payment on the purchase of 320 acres for the new Marcella Vivrette Smith Park. The winning public bid for the 20 year, fixed rate bonds was submitted by Morgan, Keegan & Co. with an exceptionally low true interest cost (TIC) of 2.926%. The second bond issue provided for the refinancing of $7.4 million of existing debt (for interest rate savings) with the lowest and best bid submitted by Raymond James and Associates with a TIC of 1.606%. This refinancing will save the taxpayers of Brentwood $764,610 in gross aggregate interest costs over the remaining 12 years of the bonds ($54,615 annually) with a net present value savings of $657,322.

Brentwood is able to receive such favorable interest rates in the bond market due to our recently reaffirmed AAA bond ratings with a stable outlook from both Moody’s Investors Service and Standard and Poor’s. The City was recognized for its historically well-managed financial operations, solid financial reserves, diverse tax base, and favorable debt profile. Brentwood is among an exceptional group of less than 200 or 2% of the local governments in America having the highest possible rating.

If you are interested in purchasing the bonds, please contact your financial advisor or broker. To view more detailed information on these current and prior bond issues, including Official Statements and continuing disclosure documents, please visit the Electronic Municipal Market Access website at http://emma.msrb.org/IssuerView/IssuerDetails.aspx?cusip=107335