The City of Wichita has refinanced some outstanding debt over the past three months to capture nearly $16.2 million in interest savings, officials announced on Tuesday.
”These pro-active refinancing steps have resulted in substantial savings over time for Wichita residents,” City Manager Robert Layton said. “The Council has directed staff to be sound stewards over public funds. These substantial refinancing savings reflect those policymaking goals. Now we can use the savings to reduce debt.”
Earlier this month during a competitive bond sale, the City saved more than $9.3 million in interest costs from 2012 through 2028 by refinancing $105.3 million in water and sewer utility refunding revenue bonds, said Kelly Carpenter, the City’s Finance Director.
The City’s refinancing program began in August with the refunding of 10 outstanding general obligation bonds. The August refinancing secured savings of nearly $5.6 million. That savings will create additional capacity within the City’s Capital Improvement Program, or CIP.
In September, the City also refinanced two series of outstanding general obligation sales tax bonds. The September refinancing secured savings of nearly $1.3 million, resulting in additional capacity within the sales tax funded portion of the CIP.
In total, the refinancing programs have captured nearly $16.2 million in savings.
The programs were successful through a combination of three factors including City officials actively monitoring outstanding debt, favorable interest rates and fiscal responsibility aimed at maintaining the City’s high-credit worthiness status.