ANCHORAGE – The Municipality’s sale of general obligation bonds this week was a great success, with interest rates continuing to remain low. Refunding bonds in the amount of $196.3 million were issued to refund outstanding General Purpose Bonds and School Bonds for a savings to the taxpayers of over $23 million.
“A successful bond sale demonstrates high investor confidence in the strength of Anchorage’s economy and future of our community. Prudent fiscal management yields tangible benefits to the Municipality,” stated Mayor Ethan Berkowitz.
The Municipality’s bond issue consisted of $132.9 million of bonds from voter approved debt for capital projects for Anchorage ($53.5 million) and the Anchorage School District ($79.4 million). Funds for capital projects include projects for roads and drainage, parks and recreation, emergency medical service, public transportation, public safety, fire protection and educational capital improvements for career, technical and vocational facility education upgrades as well as capital improvements for elementary schools and the Girdwood K-8 School.
“The Municipality’s general obligation bond rating continues to be rated AAA by Standard & Poor’s and AA+ by Fitch. Our strong financial standing resulted in an overall cost of funds for this transaction of 2.68% and saved the taxpayers $23.3 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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