Syracuse sets terms to refinance its fire station bonds, but staff advised waiting

The Municipal Building Authority of Syracuse City adopted a resolution on Sept. 8, 2026 authorizing up to $11,000,000 in lease revenue refunding bonds, according to a notice signed by the authority's secretary-treasurer. ^[1]

The bonds would refund the authority's outstanding Series 2023 bonds, which financed a new fire station, and pay issuance costs. The notice sets a maximum interest rate of 5.50%, a maximum term of 17 years and a minimum sale price of 98% of principal. The bonds would be secured by base rentals the city pays under its master lease, and holders would receive a security interest in the station. ^[1]

The 2023 bonds

The authority is a separate legal entity, formed in 2006, that borrows money, builds facilities and leases them to the city, according to its Sept. 8 minutes. In November 2023 it issued lease revenue bonds for Fire Station No. 32 through a direct placement with Webster Bank, at a fixed 4.95% over 20 years, maturing in November 2043. The bonds become callable at par, without penalty, in November 2026. ^[2]

The staff memo recorded in the minutes warned that rates may have risen enough that refinancing may not produce significant savings. The authority's board adopted Resolution MBA26-02 on a motion by Trustee Paul Watson seconded by Trustee Andrea Brown; the minutes say all voted aye. ^[2]

Staff's recommendation

At the council meeting the same night, according to draft minutes in the Oct. 13 council packet, staff estimated that potential savings had fallen from nearly $900,000 in July to about $500,000 as rates rose. Bond rating costs were estimated at $40,000 to $45,000, which the city would owe even if the refinancing did not happen. ^[3]

Assistant City Manager Stephen Marshall recommended passing the parameters but pausing the refinancing itself, with no costs incurred until the council decides to proceed, the draft minutes say. The council approved Resolution R26-36, which includes the authorization, on a motion by Councilmember Paul Watson seconded by Councilmember Abraham Pollard. ^[3]

In the authority's meeting, Marshall clarified that the council's action authorized the refinancing while the authority's action approved the bond parameters. ^[2]