(Miami, FL.)- The City of Miami has closed on a bond issue that will add funding for improvement projects throughout the city’s neighborhoods without affecting the millage rate for residents and saving more than $4 million in previously-issued debt.

“This represents a significant accomplishment for Miami, especially at this time when cities across Florida are restructuring their budgets to accommodate tax cuts mandated by the state,” said City Manager Pete Hernandez.

This Homeland Defense/Neighborhood Improvement Project Bond was approved by Miami voters in 2001 and is broken down into two series of debt: Series 2007A totaled an estimated $103 million and was issued to refinance approximately $106 million of outstanding Series 2002 Bonds for an overall savings of $4.8 million in future debt service payments. Series 2007B totaled $50 Million to provide new money proceeds for improvement projects within the City.

“We are excited about the City’s ability to issue debt at lower cost to our tax payers,” said Chief Financial Officer Larry Spring. “It is a testament to the hard work and financial diligence the City has instilled since the financial crisis.”

The debt millage on residents’ tax bills will not be increased due to the level of new construction within the City. The planned repayment source for the bond issues is ad valorem taxes.

In addition to avoiding a millage increase and saving money, the total bond issue has a solid interest rate of 4.7% due to positive bond ratings from all agencies. In March, 2007, Fitch Ratings upgraded the rating of the City of Miami’s ad valorem tax bonds to an ‘A-’ from a ‘BBB+’ and the general obligation tax bonds to an ‘A’ from an ‘A-.’ Moody’s Investors Service has maintained the city’s General Obligation Bond rating at an A2. Standard & Poor’s has also maintained its “A” rating and stable outlook for the city.

The bonds mature in 2028.