City of Valparaiso to Save Almost $1,600,00 from Bond Refinancing

Valparaiso-Vibrant-VisionaryThe City of Valparaiso has, through its Valparaiso City Utilities Board of Directors, refunded approximately $10.5 million of outstanding Water Reclamation Department sewage revenue bonds. The refundings will save the utilities $1,569,861 in total. The refundings have resulted in an annual reduction in debt service payments of approximately $123,000 for the 13 years the Water Reclamation bonds will be outstanding. Valparaiso City Utilities had recently refunded water and sewer debt in 2013 for a savings of 1 million dollars.

“The City is constantly looking for ways to meet the financial challenges brought on from increased State and Federal regulations, as well as aging utility infrastructure, while providing the quality and reliable utility services our citizens have come to expect. The savings accomplished from these refundings are one illustration of the many initiatives we pursue to meet these challenges,” said Mayor Jon Costas.

The refinancings were accomplished with the help of the utilities’ financial advisor, Umbaugh. “The savings achieved from the refundings exceeded our expectations. The results reflect the bond market’s favorable view of the Valparaiso Utilities debt and is a reflection of the utilities’ financial and management strength,” said Steve Poulos Utilities Director.