City of Wichita will save $1.36 million due to bond refinancing approved during today’s City Council meeting. The City refinanced several general obligation bonds originally issued in 2009 and 2010.
This refinancing provides more than $170,000 in savings per year for most of the remaining term of the bonds. The savings will provide additional capacity to finance needed improvements and replace aging infrastructure.
In 2009, the City began a debt refinancing program at the direction of the City Council, with the completion of 18 refinancings that provided more than $57.6 million in savings. Including Tuesday’s refinancing, savings of $33.2 million pertain to water and sewer utility revenue bonds; the remaining savings of $24.4 million are associated with general obligation bonds.
The refinancing program has been successful through actively monitoring outstanding debt, securing favorable interest rates and exercising fiscal responsibility aimed at maintaining a high-credit worthiness status.
“At the direction of City Council, City Finance staffers have aggressively identified opportunities to refinance debt, resulting in substantial savings for Wichita residents,” City Manager Robert Layton said.