The City of Valparaiso will save approximately $440,000 because it refinanced more than $3.355 million in bonds this week. Originally issued in 2002 and 2005 to finance road improvement projects, the refunded bonds had an interest rate of just over 5%. The interest rate to refinance the outstanding $3.355 million is less than 2.45%.
The refinancing was accomplished with the help of the City’s financial advisor, Umbaugh. “The lower interest rate is a reflection of the current bond market, but of equal importance, it’s a reflection of the bond market’s favorable view of the City of Valparaiso’s financial and management strength,” said John Julien, a Partner with Umbaugh.
“Each year the city works hard to find ways to save money and make the best use of every dollar. This smart refinancing is another example of our commitment to being ‘creatively frugal’ which allows us to accomplish more with less,” said Mayor Jon Costas. Local property taxes are used to make payments on the bonds.