Just as many homeowners are refinancing their home loans to save money, the city of Kyle is also taking advantage of a strong credit rating to save taxpayers’ money.
The Kyle city council finalized the refinancing at its meeting this week by authorizing the issuance of $13.72 million of General Obligations Refunding Bonds.
The primary objective of the refunding is to reduce interest cost and to levelize the city's annual debt service requirements.
The combination of both will reduce property tax rate increases next year by approximately seven cents per $100 of assessed valuation, officials said.
The city received “A+” rating on these bonds by the Standard and Poor's rating agency.
“The excellent bond rating was a key component to the city getting an interest rate on the bonds that would allow us to meet our objectives,”Perwez Moheet, city of Kyle director of finance said.