December 19, 2012
CEDAR HILLS – On December 12, 2012, the City of Cedar Hills refinanced its generalobligation bond for the golf course at a new lower rate of 2.47%. This new rate was madeavailable after the City received an AA- bond rating by both Fitch and Standard & Poor inNovember. It is difficult for any community as small as Cedar Hills to obtain such a high rating,as rating agencies generally believe that risk is reduced as costs are spread out to a largerpopulation.
In their report Fitch stated “the city has maintained good reserves, including 18% unrestrictedgeneral fund balances the past two years and excess reserves in the capital projects fund, some ofwhich have been used to support golf course operations. The city’s moderate debt levels, whichare primarily related to its golf course, are likely to decrease over time as the city intends tocontinue financing capital needs through pay-go sources.”
The new interest rate equates to a total savings of almost $500,000 over the life of the loan, orapproximately $23,000 each year. “We are pleased with the score provided by both ratingagencies and the opportunity to refinance this bond,” stated Mayor Gary Gygi. “This opportunityis due to the commitment of current and former City Councilmembers to adhere to sound fiscalprinciples throughout the years.”
The City of Cedar Hills always strives to reduce costs while providing quality service to thecommunity. Recently, Mayor Gygi headed a committee of citizens with experience and expertisein finances that carefully reviewed golf course finances to ensure the City is properly handlingthose resources. City officials are dedicated to improving the community in all areas.______________________________________________________Media inquires may be sent to Jenney Rees at firstname.lastname@example.org