Municipality of Anchorage Sells $61 Million in BondsBond refinancing achieves $1.9 million savings for taxpayers
Half of bonds were sold to retail investors
ANCHORAGE- The Municipality's sale of $61.64 million of general obligation bonds last
week was a huge success and occurred at a two-month low point in the marketplace.
Retail orders consumed about half of the total amount of bonds issued.
Chief Fiscal Officer, Lucinda Mahoney noted, "We are extremely pleased with the
market reception to our bond issue, especially since most of the bonds sold to retail
investors were sold to Alaskans. Alaskan retail investors continue to reflect Alaskan's
confidence in and strength of our economy. The bonds are rated AA+ by Fitch Ratings
and AA by Standard & Poor's and have maturities from one to twenty years. We also
are fortunate in that the overall cost of funds for this transaction is approximately three
Refunding bonds in the amount of $28.31 million were issued to refund outstanding
school bonds for a total savings to taxpayers of $1.9 million.
The balance of $33.33 million of bonds represent voter-approved debt for capital
projects for the Municipality and the Anchorage School District, including funds for
roads, public safety, police protection and educational capital improvements for career,
technical and vocational facility education upgrades.
"The success of this bonds issue demonstrates the continued investor confidence in the
Municipality of Anchorage and the outstanding management of the Municipality's fiscal
affairs currently and over the past two years and in the wake of the ongoing recession,"
said Mayor Sullivan. "Our goal is to continue to manage the cost of government in an
efficient and effective manner. This bond sale is another example any time you can
save taxpayers almost $2 million, that's a good thing."
Posted: June 8, 2011
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