Bond refunding saves city $6.4 million.

• Position: News & Numbers

The City of Sarasota, Florida recently finalized the refunding of it's Series 2007 General Obligation Bonds, resulting in a savings of $6.4 million--nearly $291,000 for every year through fiscal 2037. The city issued Series 2015 General Obligation Refunding Bonds at lower interest rates to retire the outstanding Series 2007 General Obligation Bonds with higher rates--3.14 percent versus 4.8 percent.

In March 2006, Sarasota voters overwhelmingly approved a General Obligation Bond to construct and equip a new Sarasota Police Headquarters. The Series 2007 bonds were originally issued in the amount of $46.3 million.

The subsequent Great Recession increased competition with general contractors and as a result the project cost was significantly less than anticipated and the city retained the excess bond proceeds. Over the...