Monroe officials say the city’s decision to issue some $12 million in sales tax revenue refunding bonds could save the city up to $900,000.
The Monroe City Council authorized the city to issue taxable or tax-exempt sales tax revenue refunding bonds at a meeting last month.
“The current market for bonds is favorable for us at this stage,” said Monroe City Council Chairman Doug Harvey.
By refinancing the original bonded indebtedness, the city hoped to take advantage of lower interest rates, according to Harvey.
“We have the opportunity to refinance some of our existing debt into favorable interest rates,” Harvey said.
According to Stacey Rowell, the city’s director of administration, refinancing the existing bonds could save the city $700,000 to $900,000.
Rowell pointed out the market’s lower interest rates were the motive for refinancing city bonds.
“The city and its advisors are always looking for opportunities to save the city money,” Rowell said. “In the case of this refinancing, yes, the interest rates are low.”
According to city documents, the bonded indebtedness being refinanced was originally incurred in a 2006 bond series and a 2012 bond series.
The 2006 bonds were originally pegged at $3 million with the 2012 bonds were for some $16.8 million, according to Rowell.
“These bonds are both funded through the Capital Infrastructure tax and any new funds produced by the savings will allow for additional projects,” Rowell said.
The Monroe law firm Boles Shafto is expected to handle the legal work for the bonds.