CHAMPAIGN — After refinancing loans it took out in 2010, the city expects to save more than $2 million over the next 10 years.
The refinanced bonds will have a net interest rate of 1.9 percent, the city said, taking advantage of recent interest-rate reductions.
“Just like homeowners can refinance their mortgages when interest rates drop, City staff proactively watches the financial markets in order to maximize opportunities to save money,” finance director Kay Nees said. “Thanks to the city of Champaign’s long history of fiscal responsibility and its AAApt bond rating, the city was able to refinance its bonds and save more than $2 million in interest that can be used for other city projects.”
The city issued bonds in 2010 to pay for stormwater-drainage improvements, including to the lower Second Street reach of the Boneyard Creek, which is the portion behind the new Midtown Plaza; the John Street watershed work; and the East Washington Street watershed work, Nees said.
The savings will go toward current and future stormwater-drainage projects.
“Right now, most of our projects in stormwater drainage are around Boneyard Creek, up by Bristol Place, and some of our upcoming projects that we’re looking for ways to fund are around Garden Hills,” Nees said.