Strong Credit Ratings Help City Save $5.8 Million on Bond Sale

Published on August 27, 2026

Investor demand helps City secure favorable interest rates and preserve funding for future needs.

SAN ANTONIO (August 27, 2026) — The City of San Antonio completed a $534.6 million bond sale on August 25 that will fund major public projects and save taxpayers $5.8 million in interest costs.

The City refinanced and bought back older bonds that carried higher interest costs. The two transactions will save $5.8 million over time, or $4.9 million in today’s dollars. These savings strengthen the City’s financial position and help preserve its ability to fund future projects.

“This bond sale shows the value of strong financial management,” City Manager Erik Walsh said. “By refinancing debt at favorable rates, we are saving taxpayer dollars while making important investments in streets, drainage, public safety facilities, parks and other community needs.”

The City’s strong credit ratings allowed the City to secure the best available interest rates in the market. The overall interest cost was 4.40%. The two refinancing transactions received lower rates of 3.27% and 3.12%.

Before the sale, S&P Global Ratings and Moody’s Ratings reaffirmed the City’s top-level “AAA” general obligation bond ratings. Fitch Ratings reaffirmed its “AA+” rating. All three agencies gave the City a stable outlook.

“The strong ratings reflect the City’s sound financial practices and lower the cost of borrowing,” said Chief Financial Officer Troy Elliott. “Lower borrowing costs allow more public dollars to go toward projects and services instead of interest payments.”

The bond sale included:

• $206.8 million for projects in the voter-approved 2022 Bond Program.
• $179 million to refinance or buy back older debt and lower interest costs.
• $118.7 million for streets, drainage, public safety facilities, parks, technology, solar projects.
• $22.5 million for road improvements for the East-West Connector to the Toyota facility.
• $7.6 million for public safety facilities, streets, City buildings and technology improvements.

Through strategic debt management and strong market positioning, the City continues to make strategic financial decisions that save taxpayer dollars, strengthen its fiscal position and maximize the value of its borrowing capacity.