On February 28, 2019, the city of Cleveland refinanced and refunded four bond series to save Cleveland taxpayers $6,290,503 in future debt obligations. The debt was sold on February 28, 2019 to Hutchinson, Shockey, Erley, & Co with an original fixed 20-year interest rate at 2.1573%.
Restructuring the City’s debt portfolio and saving taxpayers’ money has been a focus for the Mayor and City Council. The City’s financial adviser, Davenport & Company, made several presentations over the last few months, and this refinancing was the culmination of this process. The City was also able to eliminate two $3 million spikes in debt payment in fiscal year 2026 and fiscal year 2027 due to this refinancing process. During the past year, the City has decreased its variable debt portfolio from around 65% to now around having a total of only 30% in variable rate debt.
“The Mayor and City Council deserve significant credit for making these critical financial decisions. They saved taxpayers $6.3 million in debt reduction and significantly reduced our volatile percentage of variable rate debt. The Mayor, City Council, and staff continue to look at every opportunity to be fiscally prudent and have strong conservative fiscal management for the City. We will continue to look under every rock to ensure that tax dollars are spent wisely”, said City Manager Joe Fivas. “While this does not give us funds immediately, it gives the City more options for future pay-as-you-go projects.” said City Manager Joe Fivas.
“I appreciate all of the hard work accomplished by the City Council, Davenport & Company and City staff to make sure this refinancing was done transparently and in the best interest of our taxpayers. My hope is to work towards having an investment capital plan for streets, schools, downtown, public safety, and other important community investments”, said Mayor Kevin Brooks.