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Home > Leadership > City Comptroller > Press Releases > Schroeder saves taxpayers $6.6 million in interest by refinancing debt

Schroeder saves taxpayers $6.6 million in interest costs by refinancing 2002 school bond

Bond sale lowers interest rate on old debt to 2.15 percent

Buffalo Comptroller Mark J.F. Schroeder sold a bond that lowers the interest rate on 2002 school debt by more than three percentage points, to 2.15 percent, resulting in a budgetary savings of more than $6.6 million for Buffalo taxpayers.

“There was a strong demand from both retail and institutional investors, which is a testament to the city’s sound financial condition,” said Schroeder.

The refinancing of the nearly $32 million in debt, known as a refunding bond, was purchased by Raymond James Morgan Keegan and sold to the investor community.  It will result in an annual budgetary savings of more than a half million dollars each year until 2024.

“Buffalo’s improved bond rating is continuing to pay off, and taxpayers are reaping the benefits,” said Schroeder, who pointed out that the 2.15 percent interest rate is even lower than the rates from the three record-breaking bond sales this spring, which were 2.25, 2.48, and 2.96 percent.

In anticipation of the bond sale, each of the “Big Three” national credit rating agencies affirmed  the city’s bond ratings from earlier this year, including an “A+” from Fitch, an “A1” from Moody’s and an “A” from Standard & Poor’s.

Schroeder said that he will be refinancing more of the school district’s debt later this month, thanks to a bond refunding resolution passed by the Common Council Tuesday.  Budgetary savings from that sale are expected to exceed $13 million.