Print
E-Mail
tool name
closeSumner refinances more bonds
Water and sewer revenue bonds receive reduced interest rate, along with city’s upgrade in bond rating from “A+” to “AA”
Roxanne Cooke
The city of Sumner has refinanced $5.24 million of water and sewer revenue bonds, a move that will save the city approximately $200,000 over 10 years.
The new interest rate for the bonds is 3.76 percent, a drop from the 4.73 percent that was issued with the bonds in 1998.
Concurrently, Standard and Poor’s upgraded Sumner from an “A+” to the “AA” bond rating. Two weeks ago, the city was upgraded from an “A” to an “A+” when it refinanced $4.36 million of limited tax general obligation bonds.
An “A” rating is average for most cities, according to Deputy City Administrator Diane Supler. Improved ratings help reduce the cost of borrowing money.
“This is just a great compliment,” Supler said during Monday’s council meeting.
Mayor Dave Enslow mirrored her sentiment.
“For us to get an upgrade like this is just phenomenal,” Enslow said.
Supler noted that it took teamwork to refinance the water and sewer revenue bonds as well as the general obligation bonds. Diving in when interest rates are lower than usual turned out to benefit the city.
“It truly is a team approach,” Supler said. “It really does take a team.”
It will cost the city nearly $31,000 to refinance the water and sewer revenue bonds, she said. The bond was originally used to acquire property at the north end of town, including Sumner Meadows golf course. It matures in 2018.
The water sewer revenue bond is backed by the city’s utilities, including water, sewer and storm water funds, while general obligation debt is borrowed money used to fund capital projects and is secured by the city’s general tax revenues, such as sales and property tax.
---------------------------------------------------------------------
UPCOMING CITY HALL MEETINGS
Sumner City Hall is located at 1104 Maple St., Sumner.
> June 19: Public Safety Committee, 4:30 p.m., Sumner Fire Station, 800 Harrison St.
> June 23: City Council study session, 6 p.m.
> June 24: Finance Committee, 5 p.m.
> June 26: Arts Commission, 6 p.m.
> July 3: Planning Commission, 7 p.m.
> July 4: City Hall closed
> July 7: City Council, 7 p.m.
> July 8: Public Works Committee, 5 p.m.
> July 8: Parks Commission, 6 p.m.
> July 10: Community Development/Parks Committee, 9 a.m.