What interest rate would the City have to pay? For how long?

The interest rate is set by the bond market at the time the bonds are issued. Since the City carries an excellent bond and credit rating, the interest rate is likely to be among the lowest available for municipal bonds.  Rosenberg would issue bonds based on a 20-year maturity schedule, with nearly half of the principal expected to be paid off in the first 10 years. This repayment schedule would minimize the interest cost that must be repaid. Additionally, the bonds would be callable in ten years or less and the City would have the option to pay off the bonds early at that time.

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1. Why is the City holding a bond election rather than paying for projects as we go?
2. What is the bond election’s impact on Rosenberg’s tax rate?
3. What are the property tax impacts if the bonds are approved?
4. What interest rate would the City have to pay? For how long?
5. Can the City pay off the bonds early?
6. How are funds repaid that are received through the issuance of General Obligation Bonds?
7. What is Rosenberg’s current level of debt, and what revenue sources are used to make those debt payments?
8. Would the issuance of bonds affect our credit rating?
9. Who do I contact for more information?