How will the bond proceeds be spent?
The city received approximately $60 million in bond proceeds. Of this amount, $39 million will be used for the capital projects and approximately $9 million was used to pay off the bank loan mentioned above. An additional $7 million is for capitalized interest; these are funds set aside for future interest payments that will be paid to the bondholders. The city will not make principal payments on the bonds for the first 3 years, but interest will be due and payable to the bondholders starting from the first day of issuance. The remaining funds, approximately $1.3 were for underwriter fees and issuance costs.

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1. How will the city pay for all of these projects?
2. What are bonds?
3. How will the bond proceeds be spent?
4. Why didn’t the city just borrow from a bank?
5. Why did the city pay off the Vizcaya loan with bond money?
6. How will the bonds be paid?
7. Will my taxes increase in order to pay for the debt service on the bonds?
8. Why didn’t the city wait until they had the money available to pay for these projects instead of issuing debt?