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Home > Leadership > City Comptroller > Press Releases > Comptroller SanFilippo Says Water Bond Costs Down Comptroller SanFilippo Says Water Bond Costs DownContact: Tony Farina, 851-5255 Buffalo Comptroller Andrew A. SanFilippo announced today that the cost of borrowing on Buffalo Municipal Water Finance Authority bonds has been reduced significantly thanks to a switch from auction-rate bonds to variable rate bonds that he was able to successfully negotiate. “Last week, we were paying $51,362 a week on our $62.3 million in outstanding Water Finance Authority bonds,” said SanFilippo. “As a result of a swap to a variable rate demand obligation, this week’s rate is 1.60, and we’re paying only $19,382 in interest for the week on those same bonds.” At one point earlier this year, the auction-bond rate had more than tripled, going from about 3.3 percent to 11 percent on the bond deal that goes out until July, 2035. The auction-bond rate had gone down in recent weeks but the comptroller had already made the decision to go forward with a swap to a variable rate bond to guard against future volatility in the marketplace. Last week, a major Wall Street credit rating agency upgraded the Buffalo Water Finance Authority’s bond rating by two notches, up to an “A” rating from “BBB+.” The Standard & Poor’s agency, in announcing the upgrade, praised the system fro keeping rates comparatively low. “We are continuing our progress across the board in re-establishing strong creditworthiness,” said Comptroller SanFilippo, noting that S & P and Moody’s Investors Services had raised the city’s credit rating within the last six months to its highest levels since pre-control board days.
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