City of Woonsocket Completes Bond Refunding
Posted on: March 23, 2017 - 1:31pm
FOR IMMEDIATE RELEASE
March 23, 2017
Contact: Blake Collins, bcollins@woonsocketri.org, office: (401) 762-6400 ex: 2963, cell: (508) 838-3371
City of Woonsocket Completes Bond Refunding
Refunding Middle School bonds to save City $969,300
Woonsocket, R.I.: Mayor Lisa Baldelli-Hunt today announced that the City of Woonsocket has successfully refunded over $56 million worth of bonds that will result in a savings to the City of approximately $53,800 per year in debt payments. The City partnered with the Rhode Island Health and Educational Building Corporation (RIHBEC) to refund the bonds, which were issued in 2009 and used to finance the construction of the City’s Middle Schools.
“Successfully refunding these bonds means real savings for taxpayers in the City,” said Mayor Lisa Baldelli-Hunt. “This administration has made it a priority to implement responsible budgeting practices and cost saving measures and we are seeing the results of that with today’s news. I am proud of the great work by our Finance Department and the successful collaboration with RIHBEC.”
Refunding the bonds allows the City to capitalize on lower interest rates in the current market, saving money that would otherwise be paid towards higher interest rates. An advantageous economic climate allowed the bonds to be refunded with anaverage interest rate of 3.65% versus the previous average rate of 5.26%.
“I am pleased with the outcome of our refunding efforts, which resulted in significant savings to the City,” said Finance Director Christine Chamberland. “This undertaking was a lengthy process and was complicated by market factors that could have prevented this from happening. In the end, the savings we achieved were greater than anticipated and our department will remain on the lookout for cost saving opportunities like this in the future.”
The City’s Finance Department in coordination with its financial advisor, FirstSouthwest, initiated the refunding process with RIHBEC in October 2016. The City has successfully refunded bonds in a similar manner in March 2015, resulting in $540,000 in savings and again in February 2016, resulting in a savings of $444,300.
-30-