Friendswood Saves Over $1M by Refinancing City Bonds
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.
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