Kirkland, Washington issued $37.2 million in bonds to finance capital improvements.
The bonds mature between 2025 and 2044, yielding between 2.7% and 3.61%. They received a rating of AAA from S&P Global Ratings and Aaa from Moody’s Investors Service.
“The Aaa issuer rating reflects the city’s very strong and growing economy that benefits from its proximity to the City of Seattle (Aaa stable) and high property wealth,” Moody’s analysts wrote.
City officials said the AAA rating from the ratings agencies would result in savings for the city and its taxpayers. In a press release, city Councilmember John Tymczyszyn said the city’s economic strength, including its “robust reserves” and “commitment to responsible stewardship of public funds,” drove its credit rating.
The city will use the bond proceeds to fund city transportation projects and upgrades to fire and public safety facilities.
Kirkland, a wealthy suburb of Seattle with 92,000 residents, has become nationally known as the former headquarters of grocery giant Costco, whose “Kirkland Signature” brand features the city’s name. The bonds are general obligations of the city, backed by its full faith and credit and payable by property taxes.
Morgan Stanley & Co LLC served as underwriter on the issuance, purchasing the bonds for $42.7 million. The price reflected a premium of $5.5 million. PFM Financial Advisors LLC acted as municipal advisor.