The City Council on Monday approved an ordinance that will save the City $3.092 million in interest payments by refunding debt originally sold in 2003 and 2005. The refinancing is expected to save the City an average of $238,000 per year over the next 13 years without extending the life of the original bonds and certificates that were issued.
The Council also approved the sale of $8.32 million in new certificates of obligations at an interest rate of 2.352 percent, the lowest interest rate the City has ever received on a new money issue. The certificates will include funding for infrastructure, facility improvements, technology, equipment purchases, an ambulance and pumper, solid waste equipment and other long-term capital needs.
The City was able to receive low interest rates because of its top ratings from Standard and Poor’s and Moody’s, two of the nation’s leading credit rating agencies. Richardson is one of only five communities in Texas to hold "Triple A" ratings from both agencies. The recent Cyprus bailout and financial crisis in Europe also led to lower interest rates at the time the City was ready to refinance and issue new bonds.
Watch a presentation given at Monday’s City Council work session about the new bonds at http://bit.ly/14t9iZi.