NEW ROCHELLE, NY — Taking advantage of continued low market interest rates, the City last week sold approximately $10.6 million of general obligation refunding bonds (“refunding bonds”) to replace higher-interest 2005 Series A general obligation bonds. The maturity schedule of the refunding bonds mirrors that of the issue being refunded and will produce budgetary savings of $1,346,000 over the next nine years for an average savings to taxpayers of about $150,000 per year.
“In these challenging economic times, the refinancing enables us to reduce our budgetary expenses without impacting the services provided to our constituents”, noted Mayor Noam Bramson. “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 October 20th. The refunding bonds will be held in escrow until the 2005 bonds are called in January 2015.