The Alpharetta City Council has advanced a proposal to sell up to $23.5 million in bonds to refund outstanding general obligation debt – action that staff said could save the city about $300,000 a year, assuming current interest rates hold through the planned bond sale in February.
“Approximately $200,000 of the projected annual savings are due to the lower interest costs … with the remaining savings resulting from retiring $1.3 million of outstanding debt with available dollars in the debt service fund,” staff said in a report to the council.
The city’s financial consultant, PFM Financial Advisors LLC, has said present market conditions make it a good time to refund bonds, according to a resolution authorizing the bond sale and passed by the council. The debt is from a 2012 bond issue authorized for $29 million to fund City Hall and a parking garage, and is due to mature in the years 2021 through 2032.
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