Weekly Feature

2018-09-13 / Front Page

Bond refund brings savings


Under current market conditions, the net budgetary savings is an estimated $110,000 with the refunding of nearly $3.8 million in serial bonds by the West Seneca Town Board. The bonds were issued between 2006 and 2010.

The board adopted a resolution on Monday night granting the town permission to trade in bonds for better interest rates, saving the town $14,000 annually through 2025. The resolution allows, but does not require, the board to proceed if interest rates remain favorable.

Bonds in the amount of $4.68 million and $4.54 million were issued in December of 2006 and 2010. The outstanding principal of each bond is $1.6 million and $2.59 million, respectively.

The town will refund all or a portion of each outstanding unredeemed maturity by issuing new bonds.

Included in the resolution is a proposed refunding financial plan created by Capital Markets Advisors, independent financial advisers.

A bank-qualified refunding bond of $3.66 million with a Moody’s A1 rating is proposed.

The bonds to be refunded consist of the balances of two consolidated issues of various bond resolutions authorizing various capital improvements for the town.

A copy of the resolution and subsequent financial plan is available in the Town Clerk’s Office, 1250 Union Road, and on the town’s website, www.westseneca.net.

email: jwaters@beenews.com

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