The City of Manteca’s solid financial position means elected leaders could lock in a 4.98 percent rate for $62 million in revenue bonds that will be used to build a new police station and the city’s sixth fire station.

According to Bond Buyer — a daily trade newspaper and digital news organization based in New York City that covers the United States municipal bond and public finance industry — the average municipal revenue bond rate was at 5.50 percent as of last week.

The lower rate Manteca qualifies for based on bond raters combing the city’s financials as well as audits plus the strength of municipal revenue sources from growth and household income translates into millions of dollars of interest savings.

The bonds being issued will have a payoff that will be tied to the end of the 20-year three-quarter cent Measure Q sales tax.

The vote to authorized the issuance of bonds will take place at Tuesday’s City Council meeting.

Experts indicated there are upward pressures in play on bond rates that means the actual rate once the bonds hit the market could be slightly higher with 5.14 percent likely to be the highest it could move for a city that is positioned financially as well as Manteca.

Even at a higher rate — which would also move the average revenue bond rate higher — the city will still avoid paying millions in interest.

As such, it means freeing up even more Measure Q revenue for other endeavors including increasing the amount set aside for road work.

Although it is not an apple to apple comparison, to give you an idea of what a 4.98 percent rate looks like against what home buyers would pay, the average 30-year mortgage is now at 6.85 percent.

Independent firms that rate bonds for investors have given Manteca an AA rating.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com