The City of Cambridge, Massachusetts recently sold $2,000,000 of
community-sourced minibonds (the "Community Bonds") to
finance various capital projects, including school building
renovations and street and sidewalk improvements. The Community
Bonds are referred to as "minibonds" because (a) they
were marketed only to residents of the City of Cambridge, (b)
minimum denominations were lowered to $1,000 from the customary
$5,000 and (c) individual orders were capped at $20,000. The hope
of such a sale is to engage residents and to make residents
partners in infrastructure investments in the community. Such a
sale required an additional publicity campaign in order to engage
resident, including "Invest in Cambridge" pamphlets, bus
signage and a sign in front of Cambridge City Hall. There were also
additional administrative burdens and costs associated with such a
sale.
