The city of Santa Fe recently sold $13.59 million of the 2021 Subordinate Lien GRT Revenue Refunding bonds on the open market, and through refinancing outstanding debt it allowed for $1.3 million in savings, according to a press release.

The Nov. 16 release stated that the city recently received AA+/AA by Fitch Ratings and S&P Global for a Subordinate Lien GRT Revenue Refunding bond. Ratings agencies attributed it to Santa Fe’s “strong economic fundamentals and the city’s sound budget management during the pandemic.” Through refunding the 2010 B Railyard Infrastructure Development bond and the 2012 A CIP GRT revenue bond with the new lien, the city will save $1.3 million of interest expenses over a five-year period.

“The bond ratings we just received will continue to benefit the people of Santa Fe,” said Mayor Alan Webber. “When we are able to refund our bonds at lower interest rates, we save taxpayer's money and put those dollars toward meeting the needs of our community. It’s good financial management and it’s good for our city.”

Fitch Ratings and S&P Global both said that the ratings were due to Santa Fe’s strong management practices and debt service coverage. S&P Global said the city’s revenue collections in the second half of fiscal year 2021 showed “steady increases” that are expected to continue.

“New economic development continues with restaurants, retail and commercial establishments,” S&P said in the release. “Tourism and the movie industry are picking back up after a slowdown due to the pandemic.”

Finance Director Mary McCoy was also pleased with the savings and the excellent bond ratings. 

“The savings from the refinancing will allow us to continue investments in programs that improve Santa Fe’s future,” McCoy said.