Mayor Richard J. Berry saved $1.5 million in public money by refinancing bonds at a lower interest rate.
Albuquerque—Mayor Richard J. Berry signed documents to refinance bonds issued to the Albuquerque International Sunport at a lower interest rate, saving nearly $1.5 million between now and 2016.
The bonds were issued in 2001 to replace old asphalt with new concrete on the two major runways used at the Sunport. The bonds also allowed the creation of an air cargo apron, which is a large concrete sitting area for aircraft carrying cargo and the extension of a runway.
In 2001, the bonds were issued to the Sunport with an average interest rate of 5.16 percent. Taking advantage of lower interest rates today, the Sunport refinanced the remainder of the bonds at an interest rate of 2.07 percent. The refinancing allows the Sunport to continue to pay the entire balance off by its original date, July 1, 2016.
The lower interest rate will reduce the total expenditure of the debt service by $1.463 million. These savings will allow the Sunport to increase capital improvement projects on its grounds.
“We have a sharp finance team with a keen eye for savings,” said Mayor Berry. “We are always trying to find ways to use public dollars wisely and this certainly meets those criteria.”
The outstanding principal to be refinanced is $19,010,000. The Series 2011 Bonds were sold through the New Mexico Finance Authority at competitive sale on April 28, 2011.
“The City is proactive in managing its debt” said City Treasurer Cilia Aglialoro. “This Administration is constantly looking for opportunities to decrease debt service and save taxpayers money.”
The Albuquerque International Sunport operates on an enterprise fund, meaning tax dollars are not generally used for operations or debt service. Revenues for the enterprise fund are generally collected through airline, vendor, and runway fees.