Somerville Minibonds

Upcoming Information Sessions

• Tuesday, May 15, 2018 from 6:30 to 8:00 p.m. in the Argenizano School Cafeteria, 290 Washington St., Somerville, MA 02143
• Wednesday, May 23, 2018 from 6:30 to 8:00 p.m. in the West Somerville Neighborhood School Cafeteria, 177 Powder House Blvd., Somerville, MA 02144

What are municipal bonds?

State and local governments sell municipal bonds to finance public capital projects. In recent years, the City of Somerville has issued municipal bonds for projects like the renovation of Lincoln Park, energy efficiency building upgrades, street and sidewalk improvements, and more. The City will use the proceeds from the minibonds to fund similar capital projects.

What are Somerville minibonds? How are minibonds different from regular municipal bonds?

Minibonds are more affordable than traditional municipal bonds for certain potential investors, as they will be available in minimum denominations of $1,000, as opposed to the traditional $5,000 denomination. The 2018 Somerville minibonds will mature in five years.

Who is eligible to purchase Somerville minibonds?

Somerville residents age 18 and over can purchase minibonds in minimum denominations of $1,000.

Parents and legal guardians of individuals under age 18 can purchase minibonds as a Custodian for a Minor and hold the bonds until the minor turns 18. 

Minibonds may not necessarily be suitable for all investors and prior to completing any sale, Neighborly Securities or another broker-dealer will determine suitability for investors in accordance with applicable laws and regulations.

Minibonds will only be offered through Neighborly Securities, member FINRA, SIPC, and registered with MSRB pursuant to a preliminary official statement to be made available during the offering period. This information does not constitute an offer to sell or the solicitation of an offer to sell 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 offered and neither the City of Somerville nor Neighborly Securities is making any recommendation or giving any investment advice.

How can I buy Somerville minibonds?

Residents who are interested in buying Somerville minibonds should create an account through Neighborly.com to purchase. If you have any questions about the process, please contact Neighborly at support@neighborly.com.

Who is Neighborly?

Neighborly is a San Francisco-based firm that provides underwriting services through its registered broker-dealer subsidiary, Neighborly Securities. Neighborly is not affiliated with the City of Somerville in any way, other than as the broker-dealer for this sale of minibonds.

How many minibonds can I buy?

Minibonds will be allotted and filled on a first-come, first-served basis on orders of $20,000 or less. The minimum order size is $1,000 and there is no maximum. However, for orders greater than $20,000, the amount of the order above $20,000 is subject to pro-rata allocation if the issue is oversubscribed. Pro-rata allocations may be adjusted to ensure that no bonds are issued in an amount that is not divisible by the minimum denomination of $1,000.

Is there a fee to buy minibonds?

There is no fee to purchase Somerville minibonds through Neighborly. Other brokers may charge their customary fees.

When will minibonds be available for purchase?

The City expects to sell up to $500,000 of minibonds in its first minibonds sale, which will take place during the purchase period from May 18 to May 25, 2018.

When will the bonds mature?

The bonds will mature in 2023. Somerville minibonds will not be subject to redemption prior to maturity.

What is the interest rate on the bonds?

The interest rate will be determined at the open of the order period on May 18, 2018.

How do I find out more information about minibonds?

Neighborly representatives, along with City staff, will hold two Minibonds Information Sessions to answer questions about the minibonds and the ordering process. They will be held:

• Tuesday, May 15, 2018 from 6:30 to 8:00 p.m. in the Argenizano School Cafeteria, 290 Washington St., Somerville, MA 02143
• Wednesday, May 23, 2018 from 6:30 to 8:00 p.m. in the West Somerville Neighborhood School Cafeteria, 177 Powder House Blvd., Somerville, MA 02144

You can also visit www.neighborly.com/somerville or email support@neighborly.com.