Oakland to pave roads with lucrative bond sale, despite city's credit rating decline

"When the financial markets believe in Oakland's direction, that helps us fund the work that Oakland deserves and needs, Lee said Tuesday at a news conference. The bonds saw strong investor demand, which officials said will keep interest rates at just under 4% for $143.5 million in tax-exempt bonds and 5.5% for $191 million in taxable bonds. Lee took office amid a crisis point in Oakland's finances,"

"Roseman's successor, Bradley Johnson, said Tuesday that the city is now in better financial straits, having balanced its two-year budget and revised its planned sale of the Oakland Coliseum. The Federal Reserve has also lowered its interest rates. The market punishes you for uncertainty as much as anything else, Johnson said in an interview. Timing matters the idea of going to the bond market was never a never.'"

Oakland sold $334 million in new bonds to support infrastructure and housing projects while coping with ongoing budget deficits. Bond proceeds allocate $50 million for citywide street repaving, $33 million for public transit improvements in West Oakland, and $30 million for affordable housing developments. Strong investor demand produced interest rates just under 4% for $143.5 million in tax-exempt bonds and 5.5% for $191 million in taxable bonds. City officials report a balanced two-year budget and revised Coliseum sale plans. Measure U property-tax increases will repay the bonds, with the longest increases lasting up to 30 years.

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