Bond Refunding Saves City Estimated $4 Million in Interest
CORPUS CHRISTI, TX – On August 27, 2019, the City Council authorized the issuance of three bonds that have the potential to save the City of Corpus Christi more than $4 million in interest over the life of the bonds.
The City of Corpus Christi plans on refunding $58,680,000 of Utility System Revenue Improvement Bonds - Build America Bonds; $8,630,000 of General Improvement Bonds, and $3,815,000 of Combination Tax and Surplus Airport Revenue Certificates of Obligation.
The estimated net present value savings are estimated at $3,017,442 or 5.2%; $881,400 or 10.2%, and $560,000 or 14.6% respectively.
The “refunding of a bond” occurs when a lower interest rate is obtained to generate savings.
The Utility System Revenue Improvement Bonds are being advanced refunded. The General Improvement Bonds and the Combination Tax and Surplus Airport Revenue Certificates of Obligation are currently callable and because of favorable market conditions, City staff is recommending the outstanding balances of these bonds be refunded. In addition, this does not extend the term of the bonds.
For more information, media representatives can contact Public Information Officer Olivia Santos at 361-826-3248 or by email at email@example.com.