City wants to refinance bonds for Community Center
February 8, 2013 · Updated 5:10 PM
From staff reports:
Moody’s, the financial rating agency, notified Federal Way city officials this week that the city’s Aa3 rating will be maintained. Because of this, the city now has the ability to save $1.3 million to $1.5 million on refinancing its 2003 bonds for the Federal Way Community Center.
The city originally issued $15 million in bonds in 2003 to finance the Community Center. The original interest rates for the bonds were set at 4.66 percent, according to the city, and the refinancing proposal would lower those rates and lock them in at 3.25 percent.
“We are pleased with today’s decision which will mean significant savings for taxpayers,” Federal Way Mayor Skip Priest said in a news release. “The City Council and staff are continually looking for ways to increase savings and improve our financial operations.”
Deputy Mayor Jim Ferrell said Moody’s decision is a reflection of the solid management practices employed by the city for the Community Center.
"This step is an important part of the overall financial management of the Community Center," he said. "In addition to the debt service ratings, the Parks Department has consistently reduced operating costs while increasing revenues and adding programs for the community."