City Council recently approved the refunding of $26,780,000 in Certificates of Participation, Series 2010B. The Series 2010B COPs were issued in December 2010 and financed the cost of construction of the City’s Public Safety building, Fire Administration building, Fire Station #1 and the remodel of Fire Station #2. The Series 2010B COPs were issued as Taxable Build America Bonds.
The anticipated rate was expected to likely be in the 3.3%-3.2% range with an annual estimated savings of approximately $193,000/year. The total gross savings to the City was originally estimated to be just over $4 million.
After the sale, total gross savings to the City will be $6.2 million. Total orders were over $80,000,000, which drove the final rate down to 2.82% and the estimated annual savings is $292,000/year. The City’s recent upgraded bond rating to AA- played a large role in the number of orders received and ultimately led to the low interest rate.
General Services Director Jay Valentine states, “Management has done a remarkable job in ensuring that the City achieved the upgraded credit rating which in-turn made us very attractive in the bond market. We are always striving to maintain costs and look for ways to save as much money as possible so achieving a savings of $292,000 per year is very successful.”
The term of the new COPs is the same as the original Series 2010B COPs which mature in 2040. In addition to the refunding savings, Fire Station 1 will be released from leased property (collateral) securing the COPs and only the Public Safety building would serve as leased property for the Series 2019 Refunding COPs.
Contact: Greg LeBlanc, Assistant to the City Manager 970-244-1557 or firstname.lastname@example.org