10/27/2016 | Press release | Distributed by Public on 11/10/2016 07:27
ST. LOUIS - The City of St. Louis is cashing in on lower interest rates and favorable market conditions to reduce debt payments and save money for taxpayers. Comptroller Darlene Green announced today that in 2016 the city completed refunding several bonds in deals that will reduce future city debt payments by $9.56 million.
'The City of St. Louis is always looking to take advantage of lower market interest rates to save money for our taxpayers,' said Comptroller Green. 'Favorable market conditions have reduced the interest rates for new bonds, and by reissuing these bonds in 2016 the City of St. Louis realized a nearly $10 million present value savings.'
The city issued $83.7 million of new bonds in 2016 to retire $93.2 million of outstanding bonds. The deals refinanced bonds the city issued in 2006 and 2007 on the Carnahan Courthouse, City Hall West, Recreation Sales Tax and General Obligation Bonds.
In addition to reducing the city's total outstanding debt, lower interest rates on the new bonds also allow the city to take advantage of more favorable repayment terms.
'Just as refinancing a home mortgage when interest rates drop allows homeowners to lower their monthly payment and the total cost of financing, by refinancing these bonds St. Louis is realizing more favorable repayment terms,' said Comptroller Green. 'This increases our financial flexibility for providing vital city services and mitigating any unforeseen expenses that may arise.'
Comptroller Darlene Green is the chief fiscal officer of the City of St. Louis and is charged with safeguarding the city's credit rating and with protecting taxpayer dollars. Visit www.stlouis-mo.gov/comptroller to learn more about the Office of the Comptroller.