The City of Scottsdale has completed refinancing more than $28.3 million of debt in three distinct areas of the city – a move that will save $642,000 in annual interest for the next several years. The opportunity for savings reflects low interest rates nationally, as well as the benefits of the city’s AAA credit rating.
“Low interest rates are one of the silver linings of this recession that we have been very fortunate to take advantage of,” said Scottsdale City Treasurer David N. Smith.
The refinanced debt is specific to three of the Scottsdale’s community facility districts (CFDs) – DC Ranch, McDowell Mountain Ranch, and Via Linda Road. The debt was originally incurred to finance projects beneficial only to the properties within these districts, and all CFD principal and interest payments are assessed against properties within the districts as a part of their annual property tax bills.
The result for property owners within those districts is a reduction of property taxes estimated between $97 and $159 per year. The total interest savings will be $4.5 million over the average 6.5 year remaining life of the debt.
This transaction continues the city’s efforts to save money through debt refinancing. In July, the city refinanced $83 million of both property-tax-supported and preserve-tax-supported bonds that achieved $8.3 million in interest savings.