Redmond debt refinance saves airport $4 million

The Redmond City Council unanimously approved an ordinance to refinance approximately $20 million of outstanding debt.

This action results in a 20 percent reduction in the annual debt payments associated with the 2009 airport terminal expansion. This financial restructure saves the Redmond Municipal Airport approximately $4 million over the amortization period.

“City Council made an astute decision to refinance the airport terminal expansion bonds, significantly strengthening the airport’s long-term financial position,” said city Chief Financial Officer Jason Neff. “It is important we continually monitor the market and take advantage of opportunities like this.”

In total, the city council approved $49 million in debt for the following:

$20 million for airport terminal expansion refinance. $18 million for three additional airport projects: Expansion of the airport parking lot; a snow removal equipment building; and a quick turn-around rental car facility. $11 million for construction of a water supply facility which includes a reservoir, a well, and a pump station to accommodate growth.

In association with the debt issued for these projects, Moody’s Investors Services assigned thecCity a credit rating of Aa3, which is considered a very low credit risk.