Carpentersville Saves $2.2 Million Through Bond Refinancing

Carpentersville Saves $2.2 Million Through Bond Refinancing

The village of Carpentersville will save more than $2.2 million by refinancing general obligation bonds at a low interest rate.

According to a village of Carpentersville news release, the village resold its Series 2020 bonds on Sept. 15.

The 2020 bonds were issued to refinance the village’s existing Taxable General Obligation Bonds, Series 2010B (Build America Bonds) for debt service savings.

Village Manager Eric Johnson said officials were able to take advantage of currently low market interest rates, locking in an average rate on the 2020 bonds of 1.355%.

By refinancing the 2010B bonds, Village President John Skillman said the village will realize debt service savings of $2,218,582 over the life of the bonds.

“This is great news for the taxpayers of Carpentersville as we are going to see a savings of over $2 million and reduce our debt services property tax levy by about $200,000 per year,” Skillman said.

The 2010B bonds were originally issued in the amount of $17,805,000 for the construction of the village’s public works facility. The 2010B bonds had a final maturity date of Dec. 30, 2030.

The village has paid down $4,330,000 of the 2010B bonds, leaving $805,000 to be retired on Dec. 30, 2020 and the remaining $12,670,000 to be refinanced by the 2020 bonds.

SOURCE: village of Carpentersville news release