On September 7, 2017 the City of West University Place finalized the refunding of $9,245,000 of its Series 2009 Permanent Improvement and Refunding Bonds, Series 2010 Permanent Improvement Bonds, and Series 2010 Certificates of Obligation, resulting in a savings of approximately $1 million or over $90,000 per year over the next eleven years. The series 2017 Refunding Bonds were issued at lower interest rates to retire the outstanding indebtedness. The average rate for the retiring bonds was 4.174% compared to a 2.12% true interest cost for the newly issued Series 2017 Bonds.
“This is real savings to our taxpayers” said Mayor Susan Sample. “By working diligently to secure a lower interest rate and refund the bonds, we will experience savings in our annual debt service resulting in a reduction in the amount of ad valorem taxes needed to pay for that debt”.
The City’s strong bond rating was a significant factor in the bond refunding and associated savings.
“The Government Finance Officers Association (GFOA) best practices recommend that local governments consider refunding outstanding bonds when a 3 to 6 percent net present value can be achieved,” said City Manager, M. Christopher Peifer. “The City’s net present savings for the refunding is 9.955%” said Mr. Peifer.
For more information please contact the City Finance Department located at 3800 University Blvd., West University Place, Texas 77005, (713) 662-5817, wwaits@westutx.gov.