City of St. Louis closes $50 million general obligation bond sale

(ST. LOUIS – November 19, 2018) The sale of St. Louis City’s $50 million General Obligation (GO) Bonds, Series 2018 has closed. Proceeds from the issue support the purchase of equipment for first responders, making improvements to bridges in the city, and renovations and upgrades for city and courts facilities.

Approved by St. Louis city voters during the August primary election, the Series 2018 GO bonds were structured such that no tax increase is necessary to meet the debt service requirements

“Fully employing our current tax levy through no-tax-increase bonds is a way for the city to sustain routine capital investment before asking voters to increase property taxes,” said Comptroller Darlene Green. “This is the second bond issuance as part of the city’s 10-year financial strategy, following the $25 million GO bond issue in 2016.”

With favorable market conditions at closing on Nov. 15, the city was able to exceed the $50 million face value of the issue, receiving $50.7 million for project funds after transaction costs.

In October, S&P Global Ratings (S&P) assigned its ‘A+’ longterm rating to the Series 2018 GO bonds. The agency also affirmed its ‘A+’ rating on the city’s existing GO debt and its ‘A’ rating on the city’s existing appropriation debt, with a ‘stable’ outlook on all ratings.

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Comptroller Darlene Green is the chief fiscal officer of the City of St. Louis and is charged with safeguarding the city’s credit rating and with protecting taxpayer dollars. Visit www.stlouis-mo.gov/comptroller to learn more about the Office of the Comptroller.

Related Resources

• S&P Rates City of St. Louis Series 2018 GO Bonds an ‘A+’, Affirms ‘Stable’ Outlook and City’s Existing GO Debt as ‘A+’
• Comptroller Darlene Green Statement in Support of $50 Million No-Tax-Increase Bond Issue
• City of St. Louis Long-Range Financial Plan, 2015