The City of Edmonds said its sale Wednesday of bonds for development of Civic Park exceeded expectations, with a lower-than-estimated interest bid that will save the city about $10,000 annually in debt service costs.
Seven firms submitted bids for the bond sale. Raymond James came out on top by submitting the lowest True Interest Cost offer of 2.188672%. According to the city, this low bid coincided with another key piece of news — the Federal Reserve’s decision Wednesday morning to cut its benchmark interest rate by 25 basis points (.25%) to the range of 1.5 to 1.75%.
The city had initially estimated the annual debt service on the Civic Park bonds would total $244,000. Now, the average annual debt service payments will be $234,138.
The news follows last week’s announcement that Standard & Poors awarded Edmonds its highest, “AAA” credit rating, the first ever for the city.
“We stated last week that the award of a triple-A credit rating would make our bonds a very attractive investment in the competitive municipal bond market,” said Edmonds Finance Director Scott James. “And that was borne out this morning with Raymond James’s favorable bid, which will result in real savings to the City of Edmonds to the tune of $197,000 over the life of the bonds.”
Mayor Dave Earling said he was “delighted by good financial news two weeks in a row. First we receive the coveted AAA credit rating and next thing you know it’s paying off in real terms for Edmonds and our residents.”