The City of Friendswood recently saved over $1 million in debt service payments by refinancing all of the City’s 2003 and a portion of the City’s 2005 General Obligation bonds. The refinancing, totaling $8.8 million, helped fund many important City projects over the last few years, including the City’s new Public Safety Building, Fire Station #4, Centennial Park, and a number of drainage and street projects across the community.
Before refinancing, the average interest rate on the City’s bonds was at 4.23 percent. That rate was reduced to 2.24 percent. The refunding results in a total debt service savings of $1,026,111 over the life of the loan, or an estimated annual savings of $74,000. This was achieved without extending the life of the loan.
In addition, while many other Cities’ municipal bond ratings have been downgraded in the last few years, Friendswood has learned that we remained stable at a AA- bond rating, issued by the Standard & Poor’s Rating Services. This rating is based on a stable outlook which reflects an “expectation that the city’s property tax base will remain stable and the City will maintain a strong financial position”.
For more information on the City of Friendswood and our services, contact the City at 281-996-3220.