On June 5, the City of Redmond successfully refinanced approximately $13 million of outstanding debt, which substantially reduces the City’s debt payments and will allow for more efficient use of taxpayer money.
The City refinanced and rolled seven prior debt issuances into one new bond issuance, in order to obtain a new lower interest rate. The previous average interest rate of 4.8 percent was lowered to 2.9 percent. The refinance will reduce annual debt costs to the City’s General Operating Funds, Water Fund, Airport Fund and Golf Fund. “It is important that we continually stay apprised of market changes that provides us opportunities like this, which improve our debt management efficiencies,” states City of Redmond’s Finance/Budget Manager, Jason Neff. “This refinancing project is just one example of the City’s on-going efforts to reduce cost and utilize taxpayer money more resourcefully.”
Over the next 20 years, the total combined reduction in debt payments will be approximately $1.8 million. In the near term, debt payments will be reduced by approximately $110,000 annually. Specifically, about 50 percent of this reduction is associated with the debt for the construction of Juniper Golf Course. The resulting debt reduction will assist the City in maintaining a fiscally responsible and balanced budget.
