WINFIELD | The Town Council has voted to authorize the refinancing of sewer revenue bonds first issued by Winfield in 2006.
Winfield issued the original bonds with principal of $2.75 million. The outstanding amount owed on those bonds stands at about $2.3 million.
The action taken Tuesday to refianance, or refund, will reduce interest rates currently paid on those bonds and help eliminate any impediments to additional financing required for future sewer system work, according to the resolution approved Tuesday by Town Council at a special meeting.
In approving the resolution on second reading, the Town Council authorized the issuance of one or more series bonds with a principal not to exceed $2.5 million.
The fully registered bonds will be sold in denominations of $5,000. Interest on those bonds will be payable semiannually on Jan. 1 and July 1 of each year beginning no earlier than 2013.
Proceeds from the sale of the 2012 refunded bonds will allow the town to pay off the principal and interest on the 2006 bonds, officials said.
With the 2012 election over, the interest rates on these new bonds "may have more favorable terms," Winfield Town Council attorney Adam Sworden said.