COLUMBIA CITY — Columbia City residents will benefit from a bond refinance, which is expected to save the sewage utility $350,000 over eight-and-a-half years.
The Columbia City Municipal Sewage Works, through its Common Council, refinanced approximately $10.9 million of outstanding sewage works revenue bonds, a decision made in last week’s council meeting.
The bond refunding will result in an annual reduction in debt service payments of approximately $41,200 over the life of the bonds, for a total of more than $350,000.
The utility is constantly looking for ways to meet the financial challenges that many utilities throughout the state face, while providing the quality and reliable services the utility’s customers have come to expect, stated a news release from Mayor Ryan Daniel.
The savings accomplished from this refunding is one illustration of the many initiatives the utility pursues to meet these challenges.
“This transaction is yet another way to ensure the long-term fiscal health of our wastewater system,” Daniel said. “We are excited to be able to creatively save utility dollars through a lower interest rate.”
The refinancing was accomplished in part with the help of the utility’s financial advisor, Baker Tilly Municipal Advisors LLC.
“The savings achieved from the bond refunding exceeded our expectations,” said Jeff Rowe, a partner with Baker Tilly. “The results reflect the bond market’s favorable view of the utility’s debt and is a reflection of the utility’s financial and management strength.”