City Announces Refund of Two Bonds for Significant Yield General Obligation and Water Works & Sewer System Bonds Refunded (Galveston, TX) October 29, 2014 – the City of Galveston recently announced the refunding of outstanding bonds at a significant savings to taxpayers. The two sales were planned beginning in June of 2014, and finalized in October 2014 achieving gross savings of $2.75 million spread over fifteen years. The City formed a team including appointed city officials and staff as well as outside financial advisors, bond underwriters and bond attorneys to complete the sales. The first sale involved refinancing $20.73 million of water and wastewater bond principal at an overall interest rate of 3.08% saving $2,285,837 in gross debt service payments. The water and wastewater sale saved $1,781,125 in net present value terms spread over sixteen years. The savings from this sale exceeded the initial forecast of $1.32 million in gross savings by almost a million dollars. The second sale involved the refinancing of $6,475,000 in property tax supported general obligation debt, saving $461,753 in gross debt service and $416,866 on a net present value basis. “The City of Galveston works hard to make prudent financial decisions on behalf of taxpayers,” remarked City Manager Brian Maxwell. “We are pleased to present these refinancing results to the citizens of Galveston.” Proceeds from the bond sale will be used to refund certain obligations of the City and pay the costs associated with issuance of the bonds. For more information about the City’s Finance Department, visit cityofgalveston.org and click on “Government” and “Finance.”
Posted on: Thu, 30 Oct 2014 18:56:56 +0000