Gilbert, Arizona, through the efforts of staff and swift action by the Council, has lowered its debt service payments through the final maturity on July 1, 2021 by over $2.3 million, net of all costs of issuance. This was accomplished by refinancing $30 million of the Town’s Series 2006 Public Facilities Municipal Property Corporation (“MPC”) Revenue Bonds.
During the course of the transaction, Gilbert’s Public Facilities MPC Revenue Bonds were upgraded to AA+ by Standard and Poor’s Ratings Services (“S&P”) and affirmed as Aa2 by Moody’s Investors Service and AA+ by Fitch Ratings. The S&P upgrade cited the improved financial condition of Gilbert and the strong debt service coverage. Gilbert’s high grade bond ratings and favorable market conditions resulted in approximately $500,000 of additional savings over the original projections.