Westchester bond sale set for Feb. 26
Updated: March 22, 2013 6:13AM
WESTCHESTER — While it awaits word regarding its bond rating status, the village of Westchester on Tuesday scheduled a sale of municipal bonds for Feb. 26.
Hopefully optimistic it will secure AA bond rating status from Moody’s Investors Service, demonstrating above average to strong creditworthiness, village officials moved ahead with a plan to issue bonds at the end of the month to finance public infrastructure projects, including improvements to roads, bridges and sidewalks, waste disposal systems and water sewer lines.
The village can exercise up to $8 million in bonds, with debt from interest paid off by a 1 percentage point home-rule tax approved in November. The village also projects $630,000 in nonhome-rule sales tax revenue.
What trustees wanted first and foremost was to insulate the village from financial circumstances if they overspent within bond issue parameters, with the majority of trustees pledging to remain conservative in their approach to spending bond proceeds.
Village President Sam Pulia applauded Village Manager Janet Matthys and her staff for preparing and presenting financials during a recent meeting with Moody Investor officials. He said Westchester has been proficient in demonstrating fiscal responsibility.
A bond rating performs the isolated function of credit risk evaluation, and is often regarded as the single most important factor affecting interest cost on bonds.