In recent years, the City of Somerville, MA has issued municipal bonds to fund impactful projects including the renovation of Lincoln Park, energy-efficient building upgrades and improvements to its street and sidewalks. These bonds have given City residents and other investors opportunities to help improve Somerville and earn interest on their investments. Now, the City is issuing bonds that residents can purchase in smaller denominations so investing in the future of Somerville is even more accessible.
From May 18 to May 25, residents can purchase bonds in $1,000 denominations to support critical infrastructure and public projects including citywide bike and pedestrian upgrades, Union Square streetscape improvements, eco-friendly LED light conversions, and renovations to parks and the West Branch Library.
Traditionally, bonds are sold in higher denominations, leaving many community members on the sidelines when it comes to investing in their future. By working with Neighborly to issue the bond, and lowering the denomination from $5,000 to 1,000, the City of Somerville can unlock previously untapped pools of local capital, and build deeper connections with residents,
This approach to public finance is another example of the City’s commitment to financial excellence: In late 2017, The City of Somerville’s bond rating was upgraded by Moody’s to AA1.
Somerville joins Cambridge, MA, the States of California and Oregon and others at the forefront of putting public finance back into the hands of its constituents.
On May 18, starting at 2pm Eastern Time, residents can place an order here – without paying a management or other transaction fee. To complete their investment, an investor will need to create a brokerage account with Neighborly.
Bonds pay tax-exempt interest at the state and federal level. These bonds will not be subject to redemption prior to maturity and their interest rate will be determined at the opening of the sale period.
Residents can learn more by attending either of two information sessions:
If your community is interested in democratizing access to municipal bonds, reach out to our Public Finance team.