City's Bond Refinance Saves Taxpayers $600,000

Release Date: 
04/16/2013

When it comes to selling bonds, getting good grades certainly pays off.  Standard & Poor’s recently rated the City of Hermiston’s Full Faith and Credit Bonds as A+.  The City of Hermiston is now set to save $600,621 over the next 20 years by refinancing bonds originally issued in 2003.

The original bonds carried an interest rate of 4%, escalating to 4.65%.  The bonds, which still have 20 years until maturity, now carry a net interest rate of 2.81%.  The reduced interest rate means the City will pay $600,621 less than it otherwise would have under the old rates over the life of the bonds.  The annual savings to taxpayers then comes out to an average of approximately $30,000 per year.

The savings, when adjusted for “Present Value,” or what the total savings equate to in 2013 dollars, come out to $465,016.

Read the full refinancing report HERE.

Tags:

Accessibility Statement - The City of Hermiston is committed to making its electronic and information technologies accessible to individuals with disabilities. We are currently in the process of upgrading our web site to ensure we meet or exceed the World Wide Web Consortium’s (W3C’s) Web Content Accessibility Guidelines (WCAG) 2.0 Level AA and the Web Accessibility Initiative Accessible Rich Internet Applications Suite (WAI-ARIA) 1.0 for web content.

For more information on how to report an issue related to the accessibility or how to file a formal Section 504 or ADA (Title II) complaint about the accessibility of any content on our website, please see our full Accessibility Statement.

Anti-Discrimination Policy - It is a policy of the City of Hermiston that there will be no discrimination or harassment on the grounds of race, color, sex, marital status, religion, national origin, age, sexual orientation, or disability in any educational programs, activities or employment. For more information, visit the Anti-Discrimination Policy page.