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Council moves to prepay $3.43 million of Skyline Center variable‑rate debt
Summary
Wilmington approved an ordinance to appropriate $3,427,210 from the debt‑service fund to prepay the taxable variable‑rate portion of the 2023B Skyline debt, reducing market‑rate exposure; staff said the action leaves about $40.3 million in remaining structured obligations.
Wilmington City Council unanimously approved an ordinance to prepay the taxable variable‑rate portion of the 2023B debt issued for the Skyline Center acquisition.
Chief Financial Officer Martha Wayne told council the original financing for the Skyline acquisition totaled $68 million and included a taxable variable‑rate portion. "This ordinance would allow us to pay off all of the variable tax rate debt," Wayne said, explaining the prepayment reduces exposure to interest‑rate volatility. She said after the prepayment the city would have roughly $40.3 million remaining in limited‑obligation and taxable limited‑obligation bonds.
Councilmembers asked whether the prepayment cost less than holding the funds until a scheduled payment in September. Wayne said the city cannot predict future market rates but that prepaying reduces monthly interest payments and risk. Councilmember Lyle moved to approve; Mayor Pro Tem Tom Spears seconded and the council passed the ordinance and waived the second reading unanimously. Council clarified the appropriation is from the debt‑service fund balance and not the general fund.
Finance staff will record the ordinance and reflect the prepayment in the debt service schedule.
