NEW ROCHELLE, NY --Taking advantage of continued low market interest rates, the City last week sold approximately $4.5 million of general obligation refunding bonds (“refunding bonds”) to replace higher-interest bonds issued in 2005 and 2007. The maturity schedule of the refunding bonds mirrors that of the issue being refunded and will produce budgetary savings of $260,000 over the next thirteen years for an average savings to taxpayers of about $20,000 per year.
“This is another example of our diligent efforts to reduce our budgetary expenses without impacting the services provided to our taxpayers,” noted City Manager Charles B. Strome, III. “The sale of the refunding bonds at very favorable interest rates attests to the strength of the City’s credit worthiness.”
The City is scheduled to close on these bonds on July 8th. The refunding bonds will be held in escrow until the respective redemption dates of the existing bonds.