WINFIELD | A successful general obligation bond issue will provide extra funding for street repairs over the next two years, Clerk-Treasurer Rick Anderson told the Town Council on Tuesday.
Standard & Poor’s Rating Service gave Winfield an AA credit rating. That resulted in a lower interest rate paid by the town to investors buying the bonds, Anderson said.
“We have a 1.79 percent interest rate on these G.O. bonds. Without the double A credit rating, that interest rate would have been 3.45 percent,” he said.
The lower interest rate saves Winfield more than $60,000 in interest payments over the next two years. After paying the costs associated with issuing the bonds, there will be about $50,000 available to spend on street repairs and resurfacing, Town Council President Gerald Stiener said.
General obligation bonds are issued by municipalities to raise funds and are paid back through taxation with no assets as collateral.
Town Attorney David Austgen said S&P especially noted the financial management practices of Anderson and the Winfield Town Council for achieving the high credit rating.
Winfield’s G.O. bonds will close on Dec. 19, Anderson said.
In other business, the Town Council awarded a contract to East Chicago-based Midwestern Electric to install four left turn signals on traffic lights at 109th Avenue and Randolph Street.
Town Engineer Mike Duffy of DLZ Engineering, said Midwestern’s bid of $5,320 was the lowest of three received. The council voted for the contract not to exceed $6,000 and instructed Duffy to have the work begin immediately.
“Call them tomorrow,” Councilwoman Paulette Skinner said after the unanimous vote.
The traffic signal at Winfield’s busiest intersection was installed in 1998, but without left turn signals.
“This will definitely improve that intersection,” Stiener said.