Bond Refinancing Saves Anchorage Taxpayers $4.4 Million

Strong rating, low interest rates produce substantial savings

Mayor's Corner

12/13/2016

ANCHORAGE – In November, the Municipality closed a successful sale of general obligation bonds. Refunding bonds in the amount of $41.96 million were issued to refund outstanding General Obligation School Bonds, for a savings to the taxpayers of over $4.4 million.

 “A successful sale demonstrates high investor confidence in the strength of Anchorage’s economy and the future of our community,” stated Mayor Ethan Berkowitz.

 The Municipality’s bond issue consisted of $45.2 million of bonds from voter approved debt for capital projects for Anchorage ($24.9 million) and the Anchorage School District ($20.3 million). Funds for capital projects include projects for roads and drainage, parks and recreation and improvements to the Anchorage Police Department headquarters. Anchorage School Bonds provided funds for educational capital improvements for major building systems renewal, career and technical facility education upgrades, and design construction, expansion and renovation of school facilities.  

 “The Municipality’s general obligation bond rating was improved to AAA Stable by Standard & Poor’s, and is rated AA+ Stable by Fitch. Our strong financial standing resulted in an overall cost of funds for the transaction of 2.99% and resulted in savings to the taxpayers of $4.4 million in future debt service,” said Municipality of Anchorage CFO Robert Harris.

 For more information, contact Myer Hutchinson at (907) 343-7133.

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