Next week Commissioner of Finance Michele Madigan will sign final bond documentation for the issuance of $9.8 million of new debt, which will address the immediate capital needs of the City as laid out in the Capital Program. This debt was issued at a rate of 2.575%, which was well below last year’s issuance rate of 3.222%
CommissionerMadigan stated, “When S&P Global Ratings assigned the City’s debt a rating of ‘AA+’ in May, they spoke favorable about the City’s strong economy, management, and budgetary performance. The low interest rate achieved by this issuance shows that bond investors view the City’s fiscal health positively as well. In recent budget presentations I’ve spoken about implications of accessing the capital market, so residents should be excited about this news as issuing debt at such a low rate benefits the City’s budget, and ultimately taxpayers.”
Bond proceeds will be used toward a variety of capital projects, including the reconstruction of City Hall, the Loughberry Lake Dam project, a replacement fire truck, a replacement ambulance, equipment used by the Department of Public Works, recreation facility improvements, and upgrades to the City’s water and sewer systems.
Last year the City issued new debt of $6.8 million, and refinanced $6.3 million of 2008, 2009, and 2010 City bonds. The refinancing will generate a total budgetary savings of over $1.3 million, or roughly $60,000 per year, over the life of the new bond.
Madigan states, “The City’s continued success in the bond market confirms what our financial advisors have told us - Saratoga Springs is a premier destination, financial and otherwise. Effectively and responsibly managing the finances of the City is of the utmost importance to the Finance Department, and my department and I will continue to find ways to provide City residents and businesses with the exceptional services they expect at a price they can afford.”