2015.11.09 Council Agenda Item 01
Submitted on November 3, 2015 - 11:35am
Summary
Order authorizing up to $1,900,000 of the Town’s General Obligation Bonds to refinance and refund a portion of the Town’s outstanding 2007 General Obligation Bonds.
A public comment period will be included with this item (3 minutes).
ACTION: Council action is anticipated.
Description
The 2007, 20-year bonds in the amount of $3,900,000 were issued to finance the design, construction and equipping of the Police Station, as well as, the expansion and renovation of Central Fire Station. The remaining outstanding $1,900,000 of bonds maturing in 2016-26 carry an average interest rate of 4.11%. It is proposed to refund (refinance) these bonds through the issuance of up to $1,900,000 of the Town’s 10-year General Obligation Bonds, locking in an estimated average interest rate of about 2.38% and saving the Town an estimated $130,000 in net interest costs over the next eleven years. Attached documents include a bond refunding analysis and a schedule of the estimated net savings.
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