The city of Battle Ground has refinanced bonds in order to save nearly $200,000.
In 2003, the city issued $4.07 million in limited tax general obligation bonds to purchase the City Hall building and equipment. At the beginning of this year, $3.05 million was outstanding and payable through 2023. With an average interest rate of 4.27 percent, the city’s total liability was $4.03 million, according to a city news release.
On Monday, the city council approved refinancing the bonds. The new bonds have an average interest rate of 3.19 percent during 13 years, leaving the city’s liability at $3.84 million. The refinancing will save the city $188,225 during the life of the bonds.
A November 2008 report issued by Standard & Poor’s upgraded the city of Battle Ground’s bond rating from A (upper-medium grade) to AA- (high quality). The high-quality rating benefits the city by increasing the marketability of existing bonds and by receiving lower interest rates on future debt issuances.
On Monday, Standard & Poor’s reaffirmed the city’s high-quality rating, emphasizing the city’s maintenance of strong available balances, good financial policies and practices (including the recently adopted financial forecasting model and a minimum reserve policy) and a low debt burden with no plans to issue additional debt, according to the news release.
