Edmonds Issues Bonds to Finance Utility Projects

The City of Edmonds has issued $13.72 million of utility revenue bonds for refunding of its two existing revenue bonds, series 1998 and 2003, and about $11 million for new water, sewer and stormwater capital infrastructure projects.

The bond ordinance adopted by the City Council on Dec. 6 anticipated an average cost of borrowing of 3.86 percent. Bids came in mostly lower than that, and the actual cost of borrowing will be 3.56 percent. This represents a significant savings to Edmonds utility customers, the City says.

For the two refunded bond issues, there will be a savings of about $657,000 over the next 10 years in lower interest costs. The interest rate ranged from 2 percent to 4 percent for different maturities on the new money.

As part of the bond sale process, Moody’s Investor Services recently completed a review of City finances, operation of the City’s utility funds and general economic conditions within the City of Edmonds.

Moody’s reaffirmed the City’s strong Aa3 credit rating, noting strong past performance and planning for future costs and revenues of the utility funds.This rating contributed to the favorable interest rate the City received during the bond sale, resulting in lower future costs passed on to utility customers.

“The strong credit rating reaffirmed by Moody’s is testament to the strong financial condition of the City’s utility funds and sound management practices in planning for the future of City operated utilities,” said Edmonds  Mayor Dave Earling.