Town Of Moraga

Update on Financing for Measure K's Pavement Program

After Moraga voters overwhelmingly passed Measure K in November, 2012, the Council voted to leverage the new revenue stream to expedite road repairs, rather than waiting several years to amass enough funds to cost-effectively pave Moraga’s neighborhood roads. After several months of preparation, the Certificates of Participation (COPs) went on sale Tuesday, August 6. A quick sale was important since the recent upturn in the economy has caused interest rates to rise. The COPs for the Town of Moraga were more successful than underwriters expected, due to the Town’s high credit rating for COPs at AA+ and that the COPs were “bank qualified.” The Town dedicated almost $600,000 of its estimated $1M revenue and was able to sell the certificates for a total of $7,918,327. The largest purchaser was Schwab Muni Fund, but there were also retail banks and several local Moraga purchasers that demonstrated their confidence in the Town.

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