What are municipal bonds?

Municipal bonds (“muni bonds”) are debt securities issued by state and local governments, or their authorized agencies, to borrow or raise money for public purposes such as building schools, highways, or hospitals. When you purchase a municipal bond, you lend money to the "issuer" (i.e., the government entity that issued the bond), which, in turn, pays a set amount of interest while you hold the bond and returns your principal investment on a specified maturity date.

What is the role of credit rating agencies?

Credit rating agencies assign credit ratings based on their analysis of an issuer’s ability to make interest payments and repay principal in a timely manner.

Bonds rated BBB or Baa, or better, are characterized as “investment grade,” meaning that they have a high probability of being repaid and have few speculative features.

How much bonded debt does the City of Saint Paul have?

What is Saint Paul’s annual debt service budget?

The annual debt service budget for 2018  is $77,889,399.

The Debt Service Fund reports a subtotal of $132,662,961. After subtracting intrafund transfers of $54,773,562, the annual debt service totals $77,889,399.

For more information, please see the 2018 Mayors Proposed Budget, pg. 36.