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Home > Leadership > City Comptroller > Press Releases > Comptroller Schroeder sells bond saving taxpayers more than $800,000

Comptroller Schroeder sells bond saving taxpayers more than $800,000

Bond refinances old debt, reducing interest rates from 5.46 percent to 2.96 percent

A $7.5 million bond was sold by Buffalo Comptroller Mark J.F. Schroeder that will save taxpayers $807,394 by refinancing debt from 2004, dropping interest rates from 5.46 percent to 2.96 percent.

“We saved even more money than we initially expected,” said Schroeder.  “Thanks to market conditions and the city’s bond ratings in the ‘A’ category, taxpayers got the best deal possible.”

The debt was originally incurred in 1994 to build what is now known as First Niagara Center, home of the Buffalo Sabres.  It was initially refinanced in 2004 before this most recent refinancing deal, known as a refunding bond.

Last week the city maintained its bond ratings with the “Big 3” credit rating agencies, receiving an A+ from Fitch Ratings, an A1 from Moody’s Investor Services, and an A from Standard & Poor’s.  Schroeder said that the city’s improved ratings and low interest rates have allowed multiple refinancing deals that resulted in more than $51 million in savings since he took office in January 2012.

“We are going to continue to refinance old debt and save on interest costs every chance we get,” said Schroeder.

Later this month, another refunding bond is expected to yield nearly $10 million in savings by refinancing debt from the Buffalo Schools Redevelopment Project.  That bond sale, which will be done in conjunction with the Erie County Industrial Development Agency, received an “AA3” rating from Moody’s and an “AA-” from Standard & Poor’s.