ST. JOHN | St. John will save more than $750,000 by refinancing two municipal building corporation bonds issued in 2005 and 2006, town officials said.
The Town Council recently gave Town Manager Steve Kil the authority to proceed with the refunding process for the bonds, which mature on or after February 2020.
The bonds were issued to finance the building of the St. John Municipal Center, police and fire stations and public works building.
According to accounting firm Cender & Co., the value of the combined refunding bonds is initially estimated at $7.29 million. Lower interest rates will net savings estimated at $939,000, or 13.9 percent of the value, accountant Karl Cender wrote in a memo to Kil.
Mesirow Financial, of Chicago, would handle the process of reissuing the bonds and estimates the cost of the refinancing would be $145,800, leaving $793,200 in interest savings for the town, the memo states.
Town Attorney David Austgen is scheduled to meet with Kil, Cender and outside counsel to put together a timetable for the financing. Austgen will prepare a bond ordinance for the Town Council to consider at its May 23 meeting, town officials said.
“I’m glad to see we didn’t miss this opportunity,” said Michael Forbes, Town Council president.