By refunding its 2003 Corporate Campus East Bonds, the city of Noblesville will save $2,448,417.17 over the course of the next 15 years. City Attorney Michael Howard said the city has been advised it can drop its current interest rate of 5 percent to 3 percent.
“Interest rates are at historic low rates,” said Howard. “Shorter bonds are at a lower rate.”
Howard explained that the city is currently scheduled to pay more than $1.03 million every six months, but with refinancing, that amount would drop to approximately $950,000. According to the debt schedule, the bond will not be paid off until Jan. 15, 2028.
The new debt schedule will see an instant savings. The first payment of 2013 will save the city $1,160.83. The following year’s savings increase to $84,834.12, then to $175,097.87 in 2015. Annual savings for the following years average $160,000 to $170,000.
Howard said the city previously looked at refunding the bond last year, which would have saved $300,000, but decided to wait.
“We gambled and won,” he said. “It’s huge savings for our taxpayers.”