A double AAA bond rating from the nation’s top financial rating companies has enabled the City of Irving to sell nearly $35 million in general obligation (GO) bonds at the lowest interest rate possible. Receiving the highest credit rating on its bonds allows the city to obtain financing at a competitive rate, which translates into a lesser overall cost to residents.
The sale of the GO bonds at 3.71 percent will bring the city $6.6 million in new money to fund a number of upcoming capital improvement projects. Pending projects include improvements to the park system, neighborhood streets and sidewalks.
“Receiving such high ratings from Moody’s Investors Service and Standard & Poor’s confirms Irving’s sound financial management, which is the direct result of City Council’s dedication and the hard work of the city manager’s financial team,” said Councilman Joe Philipp, chairman of the council’s Audit and Finance Committee.
In addition, $60 million in water/sewer revenue bonds, which received a AA rating from the nation’s top financial rating agencies, were sold at an all-inclusive interest cost of 3.51 percent. Sale of the water/sewer revenue bonds will bring in more than $27 million to make pump station improvements and to replace aging water and sewer lines on more than 50 streets in Irving. Approximately $33 million will be used to refund older bonds.
“The City of Irving’s high financial ratings have resulted in a $3 million cost savings in refinancing the water and sewer bonds,” said City Manager Tommy Gonzalez.
Irving has earned the double AAA ratings for its general obligation bonds every year since 1996—a claim that can only be made by a handful of cities nationwide.
