Proposal Estimated to Save Tax Payers $850,000 over 10 Year Period
announced the City’s proposal to refinance (refund) outstanding bonds from 2007 and 2010, which is estimated to yield budgetary savings of $861,000 over the next 10 years.
The Comptroller presented his proposal to Members of the Common Council on Monday June 5th and it was passed unanimously.
The proposal to refinance comes with no additional cost to the City and does not change the length of the bonds. The interest rate on the refinancing of the bonds will be approximately 2.3%.
The refinancing plan was crafted by the Comptroller, in collaboration with Fiscal Advisors, and marks another positive step in regards to Utica’s improved financial condition.
In the past four months all three of the leading financial rating institutions (Moody’s, Standard & Poor’s Global & Fitch) upgraded the City’s credit rating and New York State Comptroller Tom DiNapoli announced tremendous improvement in Utica’s fiscal stress score, as measured by the State’s local government monitoring system.
Comptroller Morehouse stated, “Utica’s finances have shown consistent improvement over the past several years and it’s important we strategically leverage our improvement in a way that directly benefits the tax payers.”
The Comptroller continued, “I thank my staff for their great work in helping to craft this proposal and Members of the Common Council for their strong support.
An attached document has the breakdown summary of the estimated annual savings.