(INDIANAPOLIS) – The Indiana Bond Bank is pleased to announce it has refinanced the municipal water and sewer bonds originally issued in the years 2006 or 2009 for the City of Anderson (sewage), the City of Butler (water), the City of Lawrence (sewage), the City of Mitchell (water) and the City of South Bend (water).
This refunding reduces total debt service on these bonds by over $3,000,000. The 5 participating entities will save between $30,000 and $1,105,000 (or 6% to 23% of their original payment amounts), depending on the size of their initial bonds and how the community chose to apply savings. Communities paid no out-of-pocket costs to participate in the refinancing.
“We believe in managing our budget the same as our residents manage their household budgets. And just like many homeowners are refinancing their mortgages in this low interest-rate environment, we had the opportunity to do the same, saving taxpayers nearly $800,000 in interest payments”, said City of Lawrence Mayor Steve Collier.
Kelly Mitchell, Treasurer of the State of Indiana and Chair of the Board of Directors of the Indiana Bond Bank, said, “Every dollar in interest saved through this Indiana Bond Bank refinancing is one more dollar that our participating communities can reinvest toward the local quality of life initiatives.”
Communities increased their savings by refinancing together through the Indiana Bond Bank. “By pooling, our 5 communities enjoyed a streamlined process using standardized documents and a shared team of professionals,” explained Mark Wuellner, Executive Director of the Indiana Bond Bank.
Added Angela Eck, Clerk-Treasurer for the City of Butler stated: “For us, the collaboration between Butler and the Indiana Bond Bank teams represents the best in how the government is supposed to work for its citizens”.
Interest rates for the 2019 Refunding Bonds were set at a sale to investors on October 1, 2019. The transaction closed on November 5, 2019. The financing team included Raymond James as underwriter, Barnes & Thornburg as bond counsel and Crowe LLP as a municipal advisor.