City Council approved bond refinancing measures that will save the city $1.36 million in a meeting Monday. The City of Wichita several general obligation bonds originally issued in 2009 and 2010.
By refinancing these bonds, over $170,000 per year will be saved for the majority of the remaining term of the bonds. This allows the City additional capacity to replace aging infrastructure finance necessary improvements.
The City of Wichita implemented a debt refinancing program in 2009, per direction given by the City Council. The program includes the completion of 18 refinancing measures that will ultimately save over $57.6 million. This figure breaks down to a $33.2 million savings in from water and sewer utility revenue bonds, and $24.4 million in general obligation bonds.
Active monitoring of outstanding debt, securing favorable interest rates and exercising fiscal responsibility aimed at maintaining a high-credit worthiness status have made this program successful.
“At the direction of City Council, City Finance staffers have aggressively identified opportunities to refinance debt, resulting in substantial savings for Wichita residents,” City Manager Robert Layton said.