Scottsdale finance officials estimate the city saved more than $7 million by refinancing several bonds. The city recently completed the refinancing involving $169 million in Municipal Property Corporation bonds.
About a third of the refinanced bond issues funded water and sewer facilities. Proceeds from the remaining bond sales were used to purchase land at SkySong, the ASU Scottsdale Innovation Center, and to purchase land for parking and other potential needs near WestWorld, the city’s equestrian and events center.
While the city’s general obligation bonds, which are paid back through property tax revenue, already have received the highest possible bond ratings, Standard & Poor’s recently upgraded its rating for Scottsdale bonds paid back through sales tax from AA+ to the highest rating of AAA. The other two major rating agencies, Fitch and Moody’s, reaffirmed their AA+ ratings for the city’s sales tax debt.
The rating agencies cited the city’s strong economy and work force and Scottsdale’s record of fiscal management as key reasons for the high bond ratings.
The city’s high bond ratings are expected to keep interest rates low on a $42.5 million bond issue expected later this month. Of that bond issue, $10 million would be used to fund renovations at the Desert Golf Course at the Tournament Players Club of Scottsdale. The balance would pay for the city’s recent purchase of additional property near West-World.
