The Fishers City Council approved resolutions during its Aug. 17 meeting for bond refunds for the 126th Street Improvement bond, entered into in 2011; the 106th Street Improvement bond, entered into in 2013; and the economic development bonds entered into in 2013.
“Due to favorable market conditions, we have three refundings to consider on (the Aug. 17) agenda that affect savings for the city,” council President Cecilia Coble said.
City Controller Lisa Bradford presented on the resolutions.
“Due to favorable interest rates right now, it has become prudent for us to look at refunding a number of our bonds,” Bradford said. “Due to tax law change, we can’t refund every bond outstanding. You can only refund certain ones that meet a criteria, and at this time, there are three additional bonds for you to consider.”
For the 106th Street Improvement bond, the city expects $455,000 in net value savings, which is a little more than 5 percent. For the 2011 126th Street Improvements bond, the city projects $768,000 in net value savings, or approximately 10 percent. The taxable economic development bonds from 2013 are expected to result in savings of $2.4 million, or 19 percent.
“When we refinanced bonds earlier this year, the total present value for savings is $1.2 million, so this gives us an opportunity to add more substantial savings to the taxpayer and to the city,” Bradford said.
Council member Jocelyn Vare asked if there were any remaining bonds expected to be refunded before the end of the year.
“That depends on timing,” Bradford said. “One or two, potentially, could be refunded, but their savings are only $100,000 to $150,000, so right now they don’t merit the cost to refund those.”
Mayor Scott Fadness thanked Bradford and her team.
“Her and her team’s work has netted the city $3 to $4 million in cost savings, which is pretty incredible,” Fadness said.
For more, visit fishers.in.us.