Edmonds Mayor Dave Earling announced on Thursday that the city had issued $13.72 million of utility revenue bonds. The bonds are for refunding of the two existing revenue bonds, series 1998 and 2003, and approximately $11 million for new water, sewer and stormwater capital infrastructure projects.
The Edmonds City Council adopted a bond ordinance at its Dec. 6 council meeting that anticipated an average borrowing cost of approximately 3.86 percent. Bids came in mostly lower than that, and the actual cost of borrowing will be 3.56 percent, Earling said in a press release, which represents a significant savings to Edmonds utility customers.
The two refunded bond issues will result in a savings of approximately $657,000 over the next 10 years in lower interest costs. The interest rate ranged from 2.00 percent to 4.00 percet for different maturities on the new money.
As part of the bond sale process, Moody’s Investor Services recently completed a review of city finances, operation of the city’s utility funds, and general economic conditions within the City of Edmonds, the news release added. Moody’s reaffirmed the City’s strong “Aa3” credit rating noting strong past performance and planning for future costs and revenues of the utility funds. This rating contributed to the favorable interest rate the City received during the bond sale, resulting in lower future costs passed on to utility customers.
“The strong credit rating reaffirmed by Moody’s is testament to the strong financial condition of the City’s utility funds and sound management practices in planning for the future of City operated utilities,” Earling said.