Arcadia Issues Bond Refunding Saving Taxpayers $845,000

The City of Arcadia has refinanced two separate General Obligation Bond issuances saving Arcadia taxpayers $845,000 over the term of the financing. The two voter-approved measures financed the construction of the Arcadia Police Department in 1999 and the acquisition and construction of an overpass at the intersection of Santa Anita Ave and the MTA Gold Line Foothill Extension in 2011.

“This refunding made perfect sense in terms of cost savings to property owners,” said City Manager Dominic Lazzaretto. “We continue to look for every opportunity to reduce the burden to taxpayers while maintaining the high quality of services Arcadia is known for. This action accomplishes both.”

The savings are a result of a favorable interest rate environment for the City’s AAA (S&P) credit rating. The outstanding bonds ranged in rates from 2.0% to 5.0% and the refunding is being financed at a rate of 1.28%. As a result, Arcadia property taxpayers will see a decrease in their property tax payments.