Council saves $1M with bond issue

Published 4:00 am Friday, November 27, 2015

The Brundidge City Council met Tuesday to authorize the issuance of the sale of its utility revenue refunding warrants currently outstanding at $6,670,000 with annual payments ranging from 560,000 to 571,000 with final maturity in 2031.

The $6.6 million warrants were issued to fund water, sewer and electrical improvements over the years.

The sale of the utility revenue refunding warrants will redeem the 2005 warrants with 2015 warrants and will cut a year and a half off the end of the current expiration date of 2032.

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“That will save the City of Brundidge $750,000 with an additional savings of $615,000 due to a lower interest rate,” said Britt Thomas, Brundidge city manager. “The savings over the 15-year period will amount to approximately 15.5 percent.”

Thomas said the sale of the warrants would also free up $580,000 in its debt service reserve fund, $80,000 of which will be used in the 2015 warrants with the city receiving $500,000 in cash. The city no longer has a requirement to have a debt service fund in place.