The City of Champaign saved a total of $526,066.67 over the next thirteen years by refinancing a portion of the bonds issued in 2008 to finance the construction of the downtown parking deck. This is the fourth time that the City has refinanced debt in the past five years. The City’s high credit rating helped it achieve a net interest cost of 2.19%. The City holds triple-A bond ratings from Moody’s Investors Services and Fitch Ratings. No other Illinois municipality outside the Chicago metro area has even one AAA credit rating.
The City pays debt service on the 2008 bonds from the Parking Fund. The savings will help the City cover costs projected for the next thirteen fiscal years. The bonds were sold to Siebert, Brandford, Shank & Co., a minority-owned investment banking firm. In addition to getting excellent execution of the bond sale, contracting with Siebert furthered the Council Goal to increase minority business opportunities.
Contact: Richard Schnuer