The City of Lawrence is pleased to announce that it intends to offer Lawrence residents the chance to invest directly in the fire department’s infrastructure by purchasing Neighborly bonds. These Neighborly bonds enable residents to earn tax-exempt interest and invest for the future while supporting the future of Lawrence-Douglas County Fire Medical Department.
A Neighborly bond is similar to a traditional municipal bond in which investors loan money to a city or public agency for an agreed period of time, receive interest on the investment, and get their loan paid back when the bond matures. The City will use Neighborly bond proceeds for the purchase of a fire truck.
“I have always wanted to buy my own fire truck and now I can,” said Lawrence-Douglas County Fire Medical Chief Bradford.
All municipal bonds previously sold by the City were sold in denominations of $5,000 or more. Neighborly bonds are different because residents can purchase them for $1,000, making them more accessible than traditional municipal bonds for potential investors.
The City is working with Neighborly Securities* to issue the bonds. Neighborly is not affiliated with the City of Lawrence in any way, other than as the broker-dealer for this sale of Neighborly bonds.
The City expects to sell $654,000 of Neighborly bonds in its first Neighborly bond sale, which will take place from May 4 – 8, 2017. The coupon interest rate on the 2017 Neighborly bonds will be announced on May 4th, 2017. Interest will be paid semiannually. The bonds will mature on September 1, in the years 2018 through 2027.
Neighborly bonds will only be offered to investors following release of a Preliminary Official Statement of the City that will describe the terms of the Neighborly bonds and provide other financial information concerning the City. The City will issue the Preliminary Official Statement on April 11, 2017 and will be available on the City’s investor relations page.
Residents who are interested in buying Lawrence Neighborly bonds will need to create an account through Neighborly.com. Once a Neighborly bond order is submitted through Neighborly, Neighborly’s investment team reviews it for allocation. Neighborly bonds will then be allotted and filled on a first-come, first-served basis. Neighborly representatives will be at Lawrence City Hall on May 3, 2017 from 6:00 p.m. to 8:00 p.m. to provide assistance and discuss the Neighborly bond process.
*Neighborly bonds will only be ordered through Neighborly Securities, member FINRA, SIPC & registered with MSRB, pursuant to a preliminary and final official statement to be made available during the ordering period. This information does not constitute an order to sell or the solicitation of an order to buy any securities. You will be responsible for making your own independent investigation and appraisal of the risks, benefits, and suitability of any securities to be ordered and neither the City of Lawrence nor Neighborly Securities is making any recommendation or giving any investment advice.