In a continual quest to streamline finances, the City of Irving worked a plan that resulted in tremendous taxpayer savings.
In 2009, the city was planning construction on its 275,000-square-foot Irving Convention Center at Las Colinas. To fund the $133 million project, the city of Irving issued its 2009 Combination Tax and Hotel Occupancy Tax Revenue Certificates of Obligation Bonds Series. This week, the city refunded that series with a new 2017 series.
The purpose of the refunding was to leverage lower interest rates to generate $23.1 million in present value savings (18.4 percent) or $54.4 million in gross debt service savings.
Rating Agencies Moody’s Investors Service and Standard & Poor’s consistently has assigned Irving Aaa and AAA credit ratings over the years, which was a contributing factor to obtaining such significant savings. Irving is one of seven cities in Texas to be assigned top ratings from both agencies.
The City has pledged 2/7 of its Hotel Occupancy Tax toward the 2017 bonds. The Hotel Occupancy Tax is a percentage paid on each short-term hotel stay in Irving. In addition to the 2017 bonds, the City plans to pay for a portion of the 2017A Bonds from the Hotel Occupancy Tax. The 2017A Bonds were issued in March and are being used to construct the new Convention Center Parking Garage.
SOURCE The City of Irving