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| 6/27/2010 4:48:00 AM | Email this article • Print this article | Down economy results in savings for village
Bonds reissued to capitalize on six-figure savings
Mark Dudzik
EDITOR
Difficult economy aside the Village of Waterford recently realized an instant savings of $86,000 by refunding bonds associated with its water utility.
The village's financial advisors, Ehlers of Brookfield, recommended the bond sale earlier this year so the village could capitalize on the savings that could be reaped as a result of current market conditions.
Bonds that were refinanced as a result of Vice President James Mann's recommendation are the 2001 water revenue bonds that the village issued nearly a decade ago.
While the village was paying interest rates on those bonds that ranged from 4.5 percent on the low end to as much as 5.2 percent, those rates dipped down to between a little more than 1 percent to 3.45 percent.
The amount of debt still owed on those bonds - combined with the lower interest rates - was expected to net the village an immediate savings of around $86,000.
The long-term prospects for savings are event greater, according to Mann, who projected that over the life of the obligation the village could realize a total overall savings of as much as $243,000.
Sale of the bonds that were part of the refinancing of the bonds took place earlier this year.
The total amount of obligation that was refinanced was in excess of $1.1 million.
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