Queen Creek’s debt refunding results in savings of $17.1 million

queen creek

A parklet on the northwest corner of the Ocotillo Road/Ellsworth Road intersection that was part of the original bonds issued to help develop infrastructure.

The town of Queen Creek recently refinanced, known in the industry as “refunded,” $54.1 million of the town’s debt. The purpose of the refunding was to capitalize on savings from lower interest rates, without extending the term of the debt. Due to the timing, the debt was refunded at an interest rate of 2.35 percent, according to a press release.

“The final results of the refunding are extremely positive,” Queen Creek Finance Director Scott McCarty said in the release. “The savings were absolutely outstanding; the $12.5 million in savings equates to approximately 20 percent savings. Three percent savings is considered good, so we could not be happier with the results of this effort.”

The original bonds were issued to help develop infrastructure in a new and growing community, including funding for streets, traffic signals, Ellsworth Loop Road project, library, parks and the municipal center. The bonds for the Ellsworth Loop Road project were issued in 2006 as part of an Improvement District. The town issued a $54 million debt to pay for the construction of Ellsworth Loop Road; both the town and private land owners in the Improvement District pay annual assessments for their share of the improvements.

Continue reading: