Anchorage secures strong bond sales, saves taxpayers $3.8 million

The Municipality of Anchorage has successfully sold $179 million in municipal bonds, funding voter-approved community improvements refinancing existing bonds to save local taxpayers $3.8 million

Driven by strong credit ratings and competitive bidding from national investors, the sale secured a low overall interest rate of 3.81% for the Municipality's 20-year capital improvement bonds.

The Municipality sells bonds annually to fund voter-approved capital projects and improvements. Bonds are paid back over time through property taxes.

This year's bond proceeds will fund $117 million in critical capital improvements, including $51 million for voter-approved municipal projects and $66 million for Anchorage School District improvements previously approved by voters. The bond sales will fund capital improvements including roads and drainage infrastructure upgrades, police, fire, and public safety services and facilities, parks, recreation, and public transit enhancements, and repairs and upgrades to Anchorage School District facilities.

Additionally, the Municipality refinanced $66 million in existing bond debt at lower interest rates, saving taxpayers $3.8 million.

"Such a successful bond sale reflects high investor confidence in Anchorage's economic stability and financial management," said Mayor Suzanne LaFrance. "By securing such strong rates, we are delivering on voter-approved projects while keeping costs as low as possible for our taxpayers."

The bond sale attracted high interest from investors across the market, drawing 10 or more separate competitive bids per bond series. Credit rating agencies reaffirmed Anchorage's strong fiscal standing, maintaining top-tier ratings of "AA-" from Standard & Poor's and "AA" from Fitch Ratings.

The bond sale was further bolstered by Fitch Ratings revising Anchorage's credit outlook from Negative to Stable, while affirming its 'AA' rating. Rating analysts pointed to several key factors behind the upgrade, including Anchorage's strength as Alaska's economic hub, local income levels above the national average, and long-term municipal debt levels that remain well within what the Municipality can safely afford. Additionally, Fitch highlighted Anchorage's disciplined fiscal management supporting ongoing stability, strong cash reserve policies, and significant replenishment in reserves following Federal Emergency Management Agency (FEMA) reimbursements.

"Investors aggressively bid on these bonds because Anchorage remains a highly rated, stable credit name," said Chief Fiscal Officer Lance Wilber. "We are very pleased with the market's response, which directly benefits our local taxpayers, and with the continued recognition by the rating agencies of the Municipality's credit worthiness, as well as the stable underlying economy in Anchorage. We're thankful to JP Morgan Securities and Bank of America Securities for providing the Municipality's taxpayers with a very low cost of funds."

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Contact: Emily Goodykoontz [email protected] 1 (907) 205-6683

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