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RI issues nearly $4M in bonds for infrastructure work, refinancing
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The city of Rock Island has issued $3.89 million in bonds to financestreet and other infrastructure improvements and to refinance some of the city's old debt. The city secured an interest rate of 2.2 percent on the bonds, which will be paid off over 20 years. They bring the city's outstanding general obligation debt to $38 million. Moody's Investor Services assigned the city an Aa2 credit rating ahead of the bond sale, which Mayor Dennis Pauley said helped secure a low interest rate. An Aa2 rating is the third best available and indicates that Moody's regards Rock Island as a very low credit risk. "This positive bond rating reflects our commitment to do what is needed to maintain the city's financial strength," a statement from City Manager Thomas Thomas said. Money from the bond sale will be used to pay for $1.5 million in public infrastructure improvements at Ridgewood Road Sustainable Business Park. The bond sale also will finance a $430,000 project to reconstruct 44th Street from 41st Avenue to Blackhawk Road and the reconstruction of 37th Avenue, east of 44th Street for $195,000. The remainder of the bond issue will be used to service outstanding debt from previous bond sales at a lower interest rate, saving the city $44,000, according to Rock Island's finance director Cindy Parchert. A Moody's report said the Aa2 rating for Rock Island "reflects the city's relatively stable tax base in the Quad-Cities metropolitan region and diverse tax base." The Moody's report said the city had "sound financial operations with healthy reserves despite revenue pressures and above-average yet manageable debt burden." Challenges to the city's strong debt rating include below-average wealth indices in Rock Island, declining population and a dependence on "economically sensitive revenue sources," the Moody's report noted. The Aa2 rating gives Rock Island a stronger credit rating than Rock Island County, which was downgraded from Aa2 to Aa3 in August by Moody's. The city of Moline was assigned an Aa2 rating in July and last December, Moody's assigned an Aa3 credit rating to East Moline. Investors bid on bond offers by municipalities, and those with the highest credit rating typically win the lowest interest rate. Municipalities usually request a credit rating before a bond sale to make their debt easier to sell. 
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Today is Tuesday, May 21, the 141st day of 2013. There are 224 days left in the year.
1863 -- 150 years ago: On Monday the 11th inst. on Center Ridge in Mercer County,some citizens got out their cannon to celebrate the taking of Richmond. The gun wasoverloaded and burst. No one was injured, but one 30-pound piece went though thesecond story of a house.
1888 -- 125 years ago: The old folks concert at the Harper Theater last night to benefit St.Luke's Cottage Hospital, attracted a large audience.
1913 -- 100 years ago: Unless depredation by vandals in Rock Island parks is halted,special policemen will be assigned to night duty to protect the flowers and other property.
1938 -- 75 years ago: Station WHBF has received a special citation from Washington forits participation in Air Mail Week, which was observed this week throughout the nation.
1963 -- 50 years ago: A 10-year high in employment in the Quad-City area was reachedat the end of the last quarter, according to an industrial employment barometer releasedtoday.
1988 -- 25 years ago: Pee Wee teams will be able to play baseball and softball as usualon Diamond Three at Dorrance Park this summer, but after that, the ball field is doomed.County crews have put the diamond back in shape after heavy trucks marred the playingfield earlier this spring. Illinois Department of Transportation crews drove onto it to makeborings for the relocation of the junction of Illinois 84 and the Port Byron-Hillsdale road.
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