SYLACAUGA, Ala. – The City of Sylacauga today completed a $12,195,000 financing package to take advantage of lower interest rates and provide funds for future capital improvements.
The Series 2017 General Obligation Warrants refinanced $4,440,000 of current Series 2010 Warrants and borrowed an additional $7,702,847. The new warrants carried an underlying bond rating of A+ with an insurance policy which gave the bonds a rating of AA. The City was able to achieve $182,000 in net present value savings, or 4.11% of the par refunded, at an interest cost of 3.27% for a 25-year financing.
“We have many priorities, and funding is always a challenge,” said Mayor Jim Heigl. “We now look forward to investing in key projects to help maximize our city’s potential and a progressive, welcoming environment as expansion and job growth continue.”
Use of the funds is restricted to capital projects.
“The City Council and the Mayor have worked hard to find ways to fund necessary projects through cost controls, savings, and participatory grant programs rather than, for example, sales tax revenue increases, leveraging our current revenue streams,” said Council President Lee Perryman. “Most importantly, proceeds will be used for roads and infrastructure, city building upgrades-improvements, equipment, and acquisition/development of other assets, all in sync with the city’s approved strategic, comprehensive, and master plans.”
Piper Jaffray & Co. served as Sole Managing Underwriter, Maynard Cooper and Gale, P.C., served as Bond Counsel to the City, and US Bank is paying agent for the warrants.
The City Council also expects to approve a balanced Fiscal Year 2018 operating budget as early as next week.
Jeremy Law for SylacaugaNews.com | © 2017, SylacaugaNews.com/Marble City Media LLC. All Rights Reserved.