MUNSTER | Much like homeowners refinance their mortgages to obtain lower interest rates and save money, municipalities can refinance bonds issued in the past to raise money for various projects.
The Munster Town Council last month took the final steps to refinance mortgage bonds issued in 2006 by voting to reapprove the Munster Municipal Center Corp., also called the building corporation.
The nonprofit corporation was formed to assist in the financing of construction projects around the community that are then leased to Munster. Those building projects have included the facilities at Centennial Park.
The council also approved the continued leasing of Centennial Park under the direction of Munster Park District officers.
To refinance the 2006 mortgage bonds, the reapproved building corporation sold about $13 million in Series 2012 bonds during the final weeks of the year at a lower interest rate than the Series 2006 mortgage bonds.
Town Manager Tom DeGiulio told the Town Council refinancing the 2006 mortgage bonds at today’s current lower interest will save the town $1.2 million. The savings could be used to fund projects at Centennial Park, he said.
DeGiulio and Clerk-Treasurer David Shafer will report on the bond sale, closing and final interest price at the Jan. 14 meeting of the Munster Town Council.