The City of Kokomo will save $350,000 when it refinances its sewer works revenue bonds at a lower rate. The sewer bonds were originally issued in 2005 at rates averaging 4.3%. The new interest rate will be 2.5%.
The Kokomo Common Council is expected to consider refinancing the bonds at a lower interest rate. The bond interest savings will be realized at about $35,000 per year over the next ten years.
“Our department heads are tasked with pursuing every available option to save taxpayers’ money and maintain Kokomo’s strong financial position,” said Kokomo Mayor Greg Goodnight. “This savings reflects that goal.”
The City of Kokomo plans to pay off its $6 million parking garage bond in 2014, five years ahead of schedule.