May 5, 2008 Contact: Sue Baker
For Immediate Release 738-2000
Avedisian announces future savings of $1.4 million, upgrade to City’s bond rating
Good stewardship of city’s finances enabled sale of bonds at favorable interest rates
WARWICK – Mayor Scott Avedisian announced today that the city stands to save approximately $1.4 million in future debt service, thanks to the sale of General Obligation Refunding Bonds at very favorable interest rates.
Last week, the City sold $19.255 million in bonds at an interest rate of 3.19 percent. The existing rates ranged from 4.55 to 5.70 percent. In connection with the sale of the bonds, which financed various municipal projects, Standard and Poor’s (S&P) upgraded the City’s bond rating to AA- from A+.
In their report, S&P cited the City’s “good socio-economic characteristics” and “its diverse local economy, which serves as one of the state’s primary commercial and retail centers.” Additional rating factors include “a strong tax base and wealth levels, with a market value per capita of more than $140,716; consistent financial performance and position, with good reserve levels; and manageable bonded debt, with above-average amortization rates and limited future capital needs.”
“The bond rating upgrade is a significant achievement, because it moves the City into the ‘AA’ category,” Avedisian said. “With concerns about the economy on everyone’s minds, I am particularly proud that our continued efforts to protect the fiscal integrity of our City are paying such dividends. I applaud our Finance Director, Ernest Zmyslinski, for his work to help us realize these savings for our taxpayers.”
In January, Avedisian announced that the City had received, for the sixth consecutive year, an unqualified audit opinion of its finances – the highest mark the City could receive. The audit also showed a budgetary surplus of nearly $850,000 as of June 30, 2007.
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