top of page

Sale of bonds approved with AAA rating

:

By Dana Casadei


The Bloomfield Township Board of Trustees unanimously approved a resolution to ratify the terms of the sale of special assessment bonds to UBS Financial Services Inc. for $15,790,000 at their meeting on Monday, July 8.


In June, the board went to market to sell just over $18.7 million in special assessment bonds to cover part of the road paving improvements and replacements needed for Special Assessment District No. 426 and Special Assessment District No. 427, which were combined into one bond offering.


After approval was given, the township went before S&P Global, which provided a report singing the praises of Bloomfield Township’s strong financial management, giving them their AAA bond rating once again.


The AAA rating is rare for a municipality to receive, making Bloomfield Township one of only a few with this recognition in Michigan.


“We are very gratified to have our AAA bond rating reaffirmed,” said treasurer Michael Schostak. 


He said he believes that the AAA rating – the highest a municipality can receive – and the amount for the bonds both played large roles in why they received 13 bids for the purchase of the bonds, many more than they originally thought they would receive. 


In the end it was the New York-based company, UBS Financial Services Inc., which came in with the lowest bid, and a net interest cost of 3.618 percent.


As is the township policy, SAD residents will be charged at one percentage rate above the bond, totaling 4.618 percent.


Schostak noted that this rate was less than last year’s.


Each bid had a premium on the bonds, which was taken into account when the bonds were resized, resulting in a final principal amount of $15,790,000.


The principal amount is lower than the original amount for a few reasons, including pre-payments from residents in the SAD who paid their assessments in full at $1,157,453.04, and because there are some residents who are appealing the resolution to the Michigan Tax Tribunal, their cost of the assessment – $90,431.91 – had to be taken out. The rest came in a premium from UBS Financial Services Inc. to lower the face value of the bonds.


With this approval at the meeting, which passed 7-0, Schostak was able to close this deal with USB Financial Services Inc. on Wednesday, July 10, awarding the sale of the bonds in the principal amount of $15,790,000.

PayPal ButtonPayPal Button

DOWNTOWN: Unrivaled journalism worthy of reader support

A decade ago we assembled a small but experienced and passionate group of publishing professionals all committed to producing an independent newsmagazine befitting the Birmingham/Bloomfield area that, as we like to say, has long defined the best of Oakland County. 

 

We provide a quality monthly news product unrivaled in this part of Oakland. For most in the local communities, we have arrived at your doorstep at no charge and we would like to keep it that way, so your support is important.

 

Check out our publisher’s letter to the community here.

Sign Up
Register for Downtown's newsletters to receive updates on the latest news and much more!

Thanks for submitting!

Cover_Feb2025.jpg
KathyTomb2024.jpg
RestReportsTomb.gif
BeachumNEW.gif
StdUpToHate.jpg

Downtown Newsmagazine

© 2024 by Downtown Publications, Inc.

Birmingham, Michigan 48009

248.792.6464

  • White Facebook Icon
  • Instagram
  • Threads
bottom of page