Spokane Valley refinances bonds to save $1.5 million | News
The City of Spokane valley has refinanced its outstanding 2003 tax bonds in order to take advantage of lower market interest rates and a stronger credit rating.
The refinancing is expected to result in more than $1.5 million of debt service savings over the next 20 years.
The bonds were issued in 2003 for two related purposes:
$5.6 million is associated with the CenterPlace and Mirabeau Point, a 54,000 square-foot regional and community event center completed in 2005. Every six months the Spokane Public Facilities District makes payments to the City related to that project. The refunding savings of $1.38 million on that portion will reduce the amount of those payments, which are made from regional tax revenues.
$1.39 million is associated with road and street improvements in the city that were supplemented or matched with federal and state funds. The savings of $201,000 will accrue to the city's operating funds.
“We know our residents are concerned about the economy and we felt these cost reduction efforts were important,” said City Manager Mike Jackson. “The city chose to enter the bond market now so that savings could be achieved while interest rates are still near generational lows.”
“Our goal is to prudently manage the resources our community has entrusted us with,” said Finance and Administrative Services Director Mark Calhoun. “Refinancing debt at lower interest rates has helped achieve that goal.”