The Bond Buyer articles from February 2003

The Bond Buyer archives from February 2003

Bay State Feels Crunch: Aid Cuts Mean Leaner Times for Some Cities.
February 3, 2003... Last year, Massachusetts' cities and towns sold more than $2 billion in bonds, nearly setting a new record for local bond volume in the Bay State. This year, with the state already slashing more than $100 million in local aid and delaying the...

Muni Council Finally Releases RFP for Disclosure 'Post Office'.
February 3, 2003... The Muni Council on Friday released its long-awaited request for proposals for the development and operation of a new central post office disclosure facility that would provide a one-stop filing place for issuers and eliminate the...

The Digest.
February 3, 2003... Municipal bonds made modest price gains on Friday in exceptionally light trading as investors bided their time ahead of this week's $3.3 billion new issue schedule. Complete market coverage by Sean Monsarrat and Nicholas Chesla appears on page...

Big Bang for Muni Market In January: Long-Term Market Keeps Record Pace.
February 3, 2003... New-issue volume in the long-term municipal bond market continued with its record-breaking pace in January as issuers started off the new year with a surprisingly big bang. Issuers sold $23.394 billion in bonds, according to Thomson...

Texas Toyota Plant Spells Rail Bonds.
February 3, 2003... A plan in central Texas to sell the state's first rail bonds since the 1800s is likely to move forward after officials learned that San Antonio is the likely winner of a new automotive manufacturing plant that will build trucks for Toyota. ...

Friday's Market: Munis Gain Modestly in Light Day Ahead of This Week's Heavy Slate.
February 3, 2003... Municipal bonds made modest price gains Friday in exceptionally light trading as investors bided their time ahead of this week's $3.3 billion new-issue schedule. Meantime, the Treasury market fell in early trading as stock futures rose and...

News In Brief: Income Gains 0.4%; Spending Up 0.9%.
February 3, 2003... Personal income rose 0.4% and consumption expenditures increased 0.9% in December, the Commerce Department reported Friday. Personal income increased $35.3 billion to slightly more than $9.11 trillion, after an unrevised 0.3% gain in...

News In Brief: Chicago PMI Climbs To 56.0% in Jan.
February 3, 2003... The Chicago purchasing manager's index jumped to 56.0% in January from 51.3% in December, the Purchasing Management Association of Chicago said Friday. The data is compiled on a seasonally adjusted basis. An index reading below 50% signals...

News In Brief: Moody's Downgrades West Fargo, N.D.
February 3, 2003... Moody's Investors Service downgraded its rating for West Fargo, N.D., to A3 from A2 Friday, citing the city's growing debt in a growing market. The rating covers the city's $38.8 million of outstanding general obligation unlimited tax debt...

News In Brief: Senate Confirms Snow for Treasury.
February 3, 2003... The Senate confirmed John Snow as Treasury secretary in a voice vote late Thursday night, after the nominee assured two Democratic senators that he would re-examine controversial pension rules that were proposed last month. The vote...

Florida Water Board Shoots for Feb. 7 to Set Rate Targets.
February 3, 2003... Florida Water Services Authority board members could meet as early as Friday to establish the interest rate parameters for the negotiated sale of up to $550 million of revenue bonds that will be used to purchase the state's largest privately...

Airport Group Questions TSA's Use of Federal Baggage Screening Funds.
February 3, 2003... Airport lobbyists are concerned the Transportation Security Administration may have used a portion of recently appropriated federal funds earmarked for the installation of baggage-screening equipment in the nation's 429 largest airports for...

Fitch Cites Best Management Practices for Good College Ratings.
February 3, 2003... Fitch Ratings will unveil the first in a series of sector-specific reports today detailing the best management practices that colleges and universities can adopt to achieve good ratings, including investor relations programs and Web sites that...

Harrisburg Airport to Issue $129M for 'Euro-Style' Terminal.
February 3, 2003... The Harrisburg International Airport is set to sell $129 million of revenue bonds to finance capital projects, including a new "European-style" airport terminal linked by moving aerial walkways to a new Amtrak station. The late February...

The Week Ahead: Hillsborough County, Jacksonville Fill Out Florida's Negotiated Slate.
February 3, 2003... A wide array of new issues are on tap in this week's primary market, led by a healthy volume of Florida paper in the negotiated sector and smaller yet still sizable essential-service offerings in the competitive arena. The Hillsborough...

Moody's Corporate-Muni Rating Comparison Resonates Overseas as Well.
February 3, 2003... In November of last year, Moody's Investors Service issued a study that may well change the perception of municipal bond and swap risks. Based on a 30-year -- 1970 to 2000 -- history of municipal issuers, Moody's demonstrated that municipal...

Fund Flows: Muni Funds Net Inflows in 2002 Were Highest Since 1993.
February 3, 2003... Municipal bond funds had a net inflow of $16.442 billion in 2002, the highest level in nine years, according to the Investment Company Institute. The inflows, which exclude reinvested dividends and money market fund data, came as municipal...

LONG-TERM BONDS: January.
February 3, 2003... 2003 2002 Volume No. of Volume No. of Pct. ($000s) Issues ($000s) Issues Chg TOTAL $23,394,200 677 $21,612,100 952 +8.2 Development 574,900 26 508,800 21 +13.0...

NEW-ISSUE VOLUME NOTES.
February 3, 2003... The new-issue volume tables are based on information compiled by The Bond Buyer from Thomson Financial's data base on Friday, Jan. 31, 2003. All figures are preliminary and subject to revision. Long-term bonds have final stated maturities...

BOND SALES BY STATE: January.
February 3, 2003... 2003 2002 State Rank Volume Rank Volume Pct Chg Alabama 36 $36,800 20 $392,500 -90.6% Alaska 43 9,300 .. 0 n.m. Arizona 8 934,000 14 539,200 +73.2% Arkansas 34 ...

LARGEST ISSUES: January 2003.
February 3, 2003... Amount Issuer Date $2,625.0 Golden State Tobacco Securitization Corp., Calif. Jan 16 807.0 New York City, GOs Jan 14 593.1 University of Texas System Jan 9 500.0 Pennsylvania (Commonwealth),...

DELAWARE: Help on the Way.
February 3, 2003... Gov. Ruth Ann Minner proposed $258 million in transportation revenue debt and $123.8 million in new general obligation issuance, much of it for schools, when she released her recommended fiscal 2004 bond and capital improvements budget last...

MASSACHUSETTS: Swap Academy.
February 3, 2003... As part of a growing trend of small institutions using the swap market, Phillips Academy in Andover priced $40 million in synthetic fixed-rate bonds last month for $59.9 million in variable-rate demand revenue bonds that it's pricing this week....

NEW JERSEY: Driven to It.
February 3, 2003... Gov. James E. McGreevey signed a bill into law last week that will overhaul the state's Department of Motor Vehicles and clear the way for the sale of $160 million in bonds to be backed by future surcharges assessed on drivers who commit...

NEW YORK: City in Transition.
February 3, 2003... New York City officials announced on Friday that in two weeks, the city's Transitional Finance Authority will sell $600 million in bonds and $555 million in bond anticipation notes. The TFA will sell $500 million in tax-exempt fixed-rate...

NEW YORK: Aid Fade.
February 3, 2003... Gov. George E. Pataki's plan to reform the state's Medicaid payment formula might help certain upstate counties but will ultimately reduce the aid New York City receives from the state, the New York Times reported Friday. Under the...

Pennsylvania: FBI's Philly Probe.
February 3, 2003... Philadelphia City Controller Jonathan Saidel and the city's former finance director are under investigation by the Federal Bureau of Investigation for allegedly steering legal work for the city's pension fund to a major Democratic Party donor,...

School District Deficits Spur Sweeping Reform Proposals in Colorado.
February 3, 2003... Prompted by concerns over severe deficit situations recently revealed by two school districts in Colorado, state lawmakers introduced five bills on Thursday that they hope will protect school districts, taxpayers, and investors in Colorado...

Austin Powers Up $190 Million Commercial Paper Take-Out.
February 3, 2003... Austin this week will come to market with insured electric and water utility deals worth $316 million, including a conversion of $88 million of taxable debt to tax-exempt debt. The sale comes after the Internal Revenue Service in September...

Wisconsin Gov. Doyle Promises 'Steep, Serious' Cuts in Lieu of Tax Increases.
February 3, 2003... In his first state of the state address, Wisconsin Gov. Jim Doyle warned that painful cuts lie ahead in order to solve a $3.2 billion deficit in the state's next two-year budget without turning to tax increases while preserving funding for...

Market Indicators.
February 3, 2003... Dollar amounts are in millions Day's 2003 2003 Daily Yesterday Change High Date Low Date Municipal Bond Index 108-14 +2/32 108-27 (1/24) 107-26 (1/9) 40 Average Dollar Price 99.59 ...

U.S. Securities Prices.
February 3, 2003... Prices as of 3:45 p.m. EST. Source: GovPx Inc. Treasury Bills Yesterday's Prev. Day's Yesterday's (in percent of discount) Bid/Offer Bid/Offer Bid Yield 1M -- 2/27/2003 1.140/125 1.145/145 1.157 3M --...

Short-Term Tax-Exempt Yields.
February 3, 2003... Jan. 31, 2003 Jan 30, 2003 Feb. 1, 2002 Selected MIG-1/SP-1+ Notes California Rans 2 1/2s (June 03) 1.50 1.50 1.45 Los Angeles Co Trans 3s (June 03) 1.01 1.00 1.40 New York City Rans 2 1/2s (Apr 03) 1.02 ...

Municipal Market Yields.
February 3, 2003... Values at 1/31/2003 -- Basis Point Change from 1/24/2003 Aaa Aa A Baa 2004 1.18 +01 1.33 +01 1.54 +01 1.88 00 2008 2.67 -02 2.86 -02 3.09 -02 3.36 -03 2013 3.85 -03...

Municipal Market Data General Obligation Yields.
February 3, 2003... Aaa Aaa (pure) (ins) Aa A Baa 2004 1.10 1.16 1.15 1.32 1.80 2008 2.64 2.74 2.72 3.03 3.64 2013 3.85 3.97 3.95 4.29 4.85 2018 4.34 4.46 4.44 4.75 5.31 2023...

General Obligation Bond Prices for January 31, 2002.
February 3, 2003... Intermediate Long-Term Bond and Ratings (Moody's/S&P's/Fitch) Dated Cpn &Maturity Yield Price Prev Chg Cpn &Maturity Yield Price Prev Chg STATES California Series 2002 (A1/A/A) 10/1/02 4% 10/1/08...

Placement Ratio.
February 3, 2003... No. Total Amt. Sales from Placement New New Accts. New Accts. Ratio Accts. ($000s) ($000s) (%) 2003 01/31 12 1,081,559 1,062,724 98.3 01/24 21 861,535 719,570 83.5 01/17 32...

Visible Supply.
February 3, 2003... Competitive Negotiated Total ($000s) ($000s) ($000s) Weekly Averages 1/31/03 3,061,326 3,395,617 6,456,943 1/24 2,227,368 3,836,811 6,064,179 1/17 2,210,903 6,902,508 9,113,411...

New-Issue Balances.
February 3, 2003... (,000 Omitted) *Since initial reoffering + Revised upward since last report Amount Date NEW OFFERINGS Sold Balance $18,355 1/30 Wright Co., Va. $18,355 All Sold RECENT OFFERINGS ...

Municipal Bond Index Update.
February 3, 2003... The list of bonds used to calculate the Municipal Bond Index was revised after the January 31 pricing. The new coefficient is 1.0148. It was derived by dividing the January 31 index (108.448396) by the average converted price of the new...

Reoffering Yields.
February 3, 2003... NRO - Not Reoffered; S.B. - Sealed Bid; SNA - Sold, Not Available Offer Amount Date ($Mil) RECENT OFFERINGS 1 Year 5 10 15 20 25 30 Aaa -- AAA 1/9 8.0 South Carolina (State) 1.30 2.65 3.80 4.40 ... ... ... ...

Municipal Bond Index.
February 3, 2003... Yesterday Previous Day Week Ago The Bond Buyer Municipal Bond Index 108-14 108-12 108-27 Friday, January 31, 2003 Maturity Par Call Dollar Conversion Converted Date Date Price Factor Price ...

Municipal Bond Prices.
February 3, 2003... These 40 Bonds are evaluated and priced daily by Standard & Poor's Securities Evaluations. All figures are rounded to the nearest eighth when reported in this table. "Change in Bid" is rounded after calculation. Dollar Change ...

Competitive Bond Offerings.
February 3, 2003... ISSUER ST DESCRIPTION AMOUNT ($000s) TIME OF SALE FINANCIAL ADVISER LEGAL OPINION MATURING INSURER MDY'S S&P FITCH BANK-QUAL. LATEST DETAILS Monday, February 3 Moravia CSD IA Sch Ref ...

Competitive Note Offerings.
February 3, 2003... ISSUER ST DESCRIPTION AMOUNT($000s) TIME OF SALE FINANCIAL ADVISER LEGAL OPINION MATURING INSURER MDY'S S&P FITCH BANK-QUAL. LATEST DETAILS Monday, February 3 Spencer Owen Schs...

Negotiated Bond Offerings.
February 3, 2003... Tentative dates for negotiated sales of $1 million or more. Please fax all pricing & award Information to 212-989-8442. Week Of February 3 Arizona Tourism & Sports Auth AZ Rev 32,390 RBC Dain Rauscher -- -- --...

Sealed Bids Invited.
February 3, 2003... CALIFORNIA Arroyo Grande (City) $1,900,000 (Exact) Ad appeared in Bond Buyer on 1/31 Sealed bids 10 am PST Feb 11. Series A of 2003 General Obligation Bonds (Fire Station Project). Due Feb 1, 2003. Paying Agent:...

Results of Negotiated Sales.
February 3, 2003... CALIFORNIA California Statewide Communities Development Authority Jan 30, 2003 $200,000,000 Health Facility Revenue Bonds, Series 2003A (Memorial Health Services) (book entry). Dated Feb 1, 2003. Due Oct 1, 2011 to...

New German Liquidity Rules Cloud Future of Variable-Rates.
February 4, 2003... New rules expected to take effect in 2005 for foreign banks that provide liquidity for variable-rate bonds may prove to be a major iceberg in the path of a growing municipal market sector in coming years, industry sources say. There may be...

Bush Budget: Not Much for Municipals: Nothing Offered to Offset Dividend Plan.
February 4, 2003... President Bush's fiscal 2004 budget package contains only a couple of proposals that would provide relief for the tax-exempt municipal bond market, and nothing that would offset the effect of his plan to eliminate the taxation of dividends,...

Texas' Transport Creativity: New Funding Sources Paving Way for Growth.
February 4, 2003... With the current state money available for transportation only able to cover about one-third of the state's needs, Texas transportation issuers are relying on new laws and new ideas to clear the path for inventive funding. The Texas...

The Digest.
February 4, 2003... Municipal bonds drifted in light trading yesterday while the Treasury market turned in a mixed performance on a stock market advance and the increased likelihood of bigger government borrowing. Complete market coverage by Sean Monsarrat and...

News In Brief: Treasury Sees $110B In 1Q Borrowing.
February 4, 2003... The Treasury Department announced yesterday it expects to borrow $110 billion in marketable debt during the January-March 2003 quarter and to have a cash balance of $25 billion on March 31. The latest borrowing plans compare with the...

News In Brief: Construction Spending Climbs 1.2% in Dec.
February 4, 2003... Construction spending rose 1.2% in December, Commerce Department figures released Monday showed. Total construction spending rose 1.2% to $858.3 billion, following a revised 0.9% rise in November that was originally reported as a 0.3%...

News In Brief: ISM Index Falls; Still Shows Growth.
February 4, 2003... The overall economy expanded for the 15th straight month in January, while the manufacturing sector expanded for the third month in a row, the Institute for Supply Management reported yesterday. According to the ISM's monthly report on...

News In Brief:T-Bills Go at 1.155%, 1.185% High.
February 4, 2003... Tender rates for the Treasury's latest 91-day and 182-day discount bills were higher as the three-months incurred a 1.155% high rate, up from the previous auction's rate of 1.140% and as the six-months incurred a 1.185% high rate, up from...

News In Brief: Treasury to Auction 4-Week Bills Today.
February 4, 2003... The Treasury Department said yesterday it will sell $22 billion of four-week discount bills today. The four-week, or 28-day, bills will raise $9 billion of new cash by auctioning $22 billion to refund $13 billion of maturing bills. The...

Monday's Market: Municipals Drift in Light Trading; Bush Pushes $2.23 Trillion Budget.
February 4, 2003... Municipal bonds drifted in light trading yesterday while the Treasury market turned in a mixed performance on a stock market advance and the increased likelihood of bigger government borrowing. Governments were mostly lower as stocks gained...

In Texas Elections, Voters Send Mixed Messages on Bonds.
February 4, 2003... Texas voters paved the way on Saturday for new construction by approving more than $355 million of bonds, but a plan to take advantage of a two-year-old state law that allows cities to use sales tax revenues for road construction was rejected...

Bush Seeks 3.8% Hike in State and Local Government Grants.
February 4, 2003... The Bush administration proposed a 3.8% boost in grants to state and local governments in fiscal 2004 -- less than half the increase requested in 2003 -- and asked for major increases in military spending that are offset by cuts in several...

Bush Budget for Fiscal 2004 Reduces Funding to District of Columbia.
February 4, 2003... President Bush's proposed $2.23 trillion fiscal 2004 budget calls for a federal payment of $311 million to the District of Columbia, marking a reduction from the $379 million funding level he requested for the district in the current fiscal...

Cost of Tax-Exempt Bonds Estimated at $33 Billion.
February 4, 2003... Driven by a surge in both new-issue volume and advance refundings of governmental debt, the tax exemption for the interest paid on all municipal bonds will cost the federal government an estimated $33 billion in fiscal 2004 and will rise to...

Bush Seeks Largest-Ever Increase in SEC Funding.
February 4, 2003... President Bush has requested $841.5 million in funds for the Securities and Exchange Commission for fiscal 2004 -- the largest budget increase in the history of the commission, officials said. "It's a tremendous increase for the agency,"...

Budget for HUD Would Restructure Section 8 Vouchers.
February 4, 2003... President Bush yesterday unveiled a proposed $31.3 billion fiscal 2004 Department of Housing and Urban Development budget that would convert the tenant-based Section 8 voucher program into a state-run block grant program and also cut all...

Texas Comptroller Counting on 'Bootstrap' Mentality.
February 4, 2003... State Comptroller Carole Keeton Strayhorn on Monday opened The Bond Buyer Texas Public Finance Conference with optimism that Texans will use their "bootstrap" mentality to pull out of a challenging economic climate. "My key concern during...

New Reporting Rules Come at Bad Time for Texas University Systems.
February 4, 2003... New financial reporting rules have made hard times appear even worse than expected at Texas's two major university systems. But despite appearances of such problems created by the new GASB 35 rule mandated by the Government Accounting...

Deal in Focus: New Mexico Expects Strong Demand for $135 Million GO Sale.
February 4, 2003... New Mexico will go to market with $134.8 million of general obligation bonds next week, marking the first sale under newly inaugurated Gov. Bill Richardson, a prominent Democrat who has vowed to alter the economic landscape in the fiscally...

ARKANSAS: Venture Forth.
February 4, 2003... The Arkansas Development Finance Authority last week unveiled a program to raise venture capital for businesses. The U.S. Partnership for State Investment LLC was chosen through a competitive bidding process as the designated investor group...

ARKANSAS: Local Jail Bill.
February 4, 2003... The Joint Budget Committee is pushing a measure to come up with $7 million the state owes to local jails that house state inmates. The $7 million check -- which would be divided among counties if both houses of the General Assembly approve...

COLORADO: Green's Exit.
February 4, 2003... Gary Green, director of the Colorado Springs Airport, will retire in May after 15 years of service. Green says he wants to explore other career avenues in the aviation industry. A graduate of the University of Texas-Arlington, Green...

COLORADO: Teacher Talks.
February 4, 2003... St. Vrain School District officials announced late last month they will call in a mediator to help settle a dispute with teachers who want their workload reduced after a state-sponsored bailout plan for the district mandated a 7% pay cut. ...

TEXAS: Presiding at TPFA.
February 4, 2003... Gov. Rick Perry last month named R. David Kelly of Dallas as the presiding officer of the Texas Public Finance Authority's board of directors. Kelly is a partner at Carleton Residential Properties, where he directs the company's...

TEXAS: Forte's Finale.
February 4, 2003... Lubbock deputy city manager Debra B. Forte will retire this month after nearly 10 years of service to the city. Over her 25-year career as a public finance officer, Forte has been responsible for the financial affairs and debt obligations...

UTAH: New Tax Tack.
February 4, 2003... Sen. Lyle Hillyard, R-Logan, is proposing a sales tax on purchases of goods on the Internet with revenues distributed based on the point of delivery rather than the point of sale. Supporters say the system would allow Utah retailers to...

Additions: Wachovia Trust Hires Two to Boost Business Development.
February 4, 2003... In a move to shore up its presence in the Northeast and Southwest, Wachovia Corporate & Institutional Trust has hired two industry veterans. John Sugden is a new-business development officer for the Northeast region, and Ronda L. Parman is...

Short-Term Tax-Exempt Yields.
February 4, 2003... Feb. 3, 2003 Jan 31, 2003 Feb. 4, 2002 Selected MIG-1/SP-1+ Notes California Rans 2 1/2s (June 03) 1.47 1.50 1.45 Los Angeles Co Trans 3s (June 03) 1.03 1.01 1.35 New York City Rans 2 1/2s (Apr 03) 1.07 ...

U.S. Securities Prices.
February 4, 2003... Prices as of 3:45 p.m. EST. Source: GovPx Inc. Treasury Bills Yesterday's Prev. Day's Yesterday's (in percent of discount) Bid/Offer Bid/Offer Bid Yield 1M -- 2/27/2003 1.140/135 1.140/125 1.157 3M --...

Municipal Market Data General Obligation Yields.
February 4, 2003... Aaa Aaa (pure) (ins) Aa A Baa 2004 1.10 1.16 1.15 1.32 1.80 2008 2.65 2.75 2.73 3.04 3.65 2013 3.85 3.97 3.95 4.29 4.85 2018 4.34 4.46 4.44 4.75 5.31 2023...

Market Indicators.
February 4, 2003... Dollar amounts are in millions Day's 2003 2003 Daily Yesterday Change High Date Low Date Municipal Bond Index 108-14 unch 108-27 (1/24) 107-26 (1/9) 40 Average Dollar Price 99.61 +0.02...

Municipal Market Data Total Returns.
February 4, 2003... Maturities 15 Years and Longer -- Periods Ending Jan. 31, 2003 Previous Month Year Week To Date To Date General obligation (composite) -0.242% -0.766% -0.766% Aaa (pure) -0.202 -0.690 -0.690 ...

New-Issue Balances.
February 4, 2003... (,000 Omitted) *Since initial reoffering + Revised upward since last report Amount Date RECENT OFFERINGS Sold Balance $157,650 1/22 San Francisco Airport Comm., Calif. (2 iss.) $2,280 $45,865 ...

Reoffering Yields.
February 4, 2003... NRO - Not Reoffered; S.B. - Sealed Bid; SNA - Sold, Not Available Offer Amount Date ($Mil) NEW OFFERINGS 1 Year 5 10 15 20 25 30 2/3 9.0 Columbia, Mo. (AA) 1.15 2.65 3.80 ... ...... ... RECENT OFFERINGS Aaa --...

Municipal Bond Prices.
February 4, 2003... These 40 Bonds are evaluated and priced daily by Standard & Poor's Securities Evaluations. All figures are rounded to the nearest eighth when reported in this table. "Change in Bid" is rounded after calculation. Dollar Change ...

Municipal Bond Index.
February 4, 2003... Yesterday Previous Day Week Ago The Bond Buyer Municipal Bond Index 108-14 108-14 108-24 Monday, February 3, 2003 Maturity Par Call Dollar Conversion Converted Date Date Price Factor Price ...