Forest Preserve Bond Refinancing Will Save Taxpayers $10 Million
The Forest Preserve District of Kane County refinanced nearly $65 million in general obligation bonds, Aug. 24, a move that will ultimately save taxpayers $10 million.
To take advantage of lower interest rates, the district issued $65,180,000 in refunding bonds, to pay off a portion of the district’s 2007 bonds. The refunding bonds were sold at a lower interest rate, resulting in a present value of $10,147,301 or 16.249 percent of refunded principal. The 2007 bonds had been issued to finance land acquisition and preserve improvements following an $85 million referendum.
“This is a great result for the taxpayers,” said Forest Preserve District Executive Director Monica Meyers. “Much like a homeowner would refinance a mortgage when interest rates are favorable, the district took this opportunity to lower our debt obligations. We had hoped to save at least $7 million. We’re ecstatic with the more than $10 million saved for taxpayers,” she said.
“This refinancing produces significant cost savings to the public and supports our long-standing efforts to best manage our finances on behalf of the taxpayer,” said Director of Finance Ken Stanish. “This bond refinancing is now the fifth refinancing we’ve done in the last two years. We’ve been able to save $12.95 million for taxpayers, over the life of the bonds.
The district’s success and fiscally conservative approach have not gone unnoticed. In June, the district was awarded its fourth straight Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association.
The bond sale was handled by Speer Financial, Inc. Chapman and Cutler served as bond counsel. The district was rated AA+ by Standard & Poor’s.
SOURCE: Forest Preserve District of Kane County news release
About the Forest Preserve District of Kane County
The Forest Preserve District of Kane County acquires, holds and maintains land to preserve natural and historic resources, habitats, flora and fauna. The district restores, restocks, protects and preserves open space for the education, recreation and pleasure of Kane County citizens. For more information, visit the district’s website or find them on social media via Facebook, Twitter or Instagram. Also, sign up for the quarterly TreeLine Newsletter.
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