Re-Financing Plan to Save $10 Million On Water Bonds
Refinancing your home can often save you some significant money, but when it comes to multi-million dollar government bonds, the savings can be impressive. Cobb County’s Finance Department plans on refinancing the 2009 Water and Sewerage Improvement Revenue Bonds. That action will save the county’s Water Fund more than $10 million over the remaining life of the bonds.
County Manager Rob Hosack says Cobb’s long run of AAA ratings by financial agencies makes these savings possible.
“Our commitment to efficiency and being good stewards of taxpayer’s money opens the door to these type of refinancing options,” Hosack said.
Finance Director Bill Volckmann says the new refunded bonds will reduce the principal on the debt from $88.8 million to $77.5 million. The 13.46% savings is well above the 3% criteria for refinancing. Issuance costs will be paid from the proceeds of the Refunding Bonds and will not impact the county's budget.
The Board of Commissioners will consider the refinancing plan at its May 28th meeting.
Ross Cavitt | Cobb County Communications | [email protected]