Bond refunding will save township $55,000

by BETH ALTENA

Township Manager Robert Homan talks to the Plainfield Board of Trustees regarding refunding (refinancing) water bonds. The board held a special meeting to discuss the plan along with other agenda items.

Low interest rates are a pain to investors but a chance to save badly needed money for those borrowing. Plainfield Township voted Monday, August 29 at a special meeting, to refund (refinance) 2001 water bonds at a lower interest rate, which will save the township $55,000 over the remaining three years of the bonds.

Currently the bonds are at interest rates of 4.25 percent to 4.45 percent. With interest rates at 1.7 percent, the savings are significant enough to undergo the costs associated with refinancing.

Warren Smith said the township’s financial advisor Tom Traciak brought the proposed money-saving opportunity to his attention. He said a significant source of savings would be in using a Debt Service Reserve, required at the original time of issuing the bonds to pay off the principal. He proposed using $412,000 of the original $561,000 to pay off the principal. The lower rate and saving paying four percent interest on the bonds would result in saving $55,000 over the remaining three years. It will cost $27,500 in fees and bond underwriting to refinance the bonds.

“It’s going to save money and it’s worth doing,” said Trustee Vic Matthews.

The refunding was approved by unanimous vote, but will need to be approved by the board at the regular Monday, Sept. 6 meeting.

Other Stories from the Squire

Top News…

Michigan ChalleNGe cadet meets Dale Earnhardt Jr. ALEXANDRIA, Va. – Respect, hard work, … [Continue Reading...]

Attention veterans! A call to action. Please stand for those who have fallen.   The Moving … [Continue Reading...]

The Rockford Girls’ Lacrosse team has been ranked number one in the Division One poll for most of … [Continue Reading...]

By JOHN HOGAN Rockford - and most of West Michigan, became a water wonderland last week as a … [Continue Reading...]

More Posts from this Category

In Other News

Knowing Your Competition   by David Broyles SCORE Counselor   Regardless of … [Continue Reading...]

Downtown Rockford was as busy this sidewalk sale week as in past years, despite a heat index of over … [Continue Reading...]

Rockford resident, writer and photographer John Hogan shared this picture with the Squire. The … [Continue Reading...]

David S. Fry

They wrote the book on cottage law—literally Recently, Attorney David S. Fry opened the … [Continue Reading...]

More Posts from this Category

Speak Your Mind

*