Bond sales may save millions

November 30, 2010

Though it may have appeared like routine city business, some of the ordinances approved by Council recently could save the city millions of dollars by taking advantage of lower interest rates.

Council approved multiple ordinances authorizing the city to issue and sell new notes and bonds for a variety of debt repayment and infrastructure improvement projects. Money from sale of some of those new bonds will be used to retire older obligations made when interest rates were higher.

When introducing the ordinances, Ward 7 Councilperson and Budget and Finance Committee Chair Tina Merlitti estimated the city could save nearly $5 million in interest payments.