The City of Somerville announced last month that it will soon offer residents the opportunity to invest in Somerville’s future by purchasing minibonds. Minibonds not only allow purchasers to directly support the community’s collective goals by investing in the financing of some of Somerville’s capital projects, they also enable residents to earn tax-exempt interest.
Broker-dealer Neighborly Securities, along with City staff, will hold two Minibond Information Sessions to answer questions about the minibonds and the ordering process. They will be held:
§ Tuesday, May 15, from 6:30 to 8 p.m. in the Argenizano School Cafeteria, 290 Washington St.
§ Wednesday, May 23, from 6:30 to 8 p.m. in the West Somerville Neighborhood School Cafeteria, 177 Powder House Blvd.
Minibonds will be available for purchase by Somerville residents from May 18 to May 25 and will be sold in $1,000 denominations. This is one-fifth of the lowest denomination that municipal bonds are otherwise typically sold for ($5,000). The lower denomination is designed to allow broader participation by community member investors.
Minibonds will first be allotted and filled on a first-come, first-served basis on orders of up to $20,000. The minimum order size is $1,000 and there is no maximum. However, for orders over $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.
Residents who are interested in buying Somerville minibonds will need to create an account through Neighborly’s website at www.neighborly.com.
For questions about Somerville minibonds or setting up an account with Neighborly to purchase minibonds, please contact Neighborly by emailing support@neighborly.com, calling 866-432-1170, or visiting www.neighborly.com/somerville. A list of FAQs can also be found on the City’s website at www.somervillema.gov/minibonds.