Council OKs plan to refinance debt

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by Laura Freeman

Reporter

Hudson -- By reissuing bonds at lower interest rates, the city will save $1 million on its outstanding debts of nearly $15 million, according to its finance director.

Council unanimously approved allowing the city to "refund" or refinance five of the city's outstanding debts at a lower interest rate and save the city nearly $1 million over the life of the bonds.

Finance Director Jeff Knoblauch said the interest rates on the new debt would average between 2.9 percent and 3.5 percent, compared to the existing rate of 4.9 percent to 6.3 percent.

The debts include $370,000 for construction of the township fire facilities in 1992; $6.195 million for real estate acquisition, which includes the Ellsworth Meadows Golf Club and park land, in 1998; $2.12 million for water line improvement bonds in 1998; $5.675 million for the construction of the library in 2000; and $730,000 for park improvement bonds, which includes Barlow Farm park, in 2000.

The city will issue one-year notes followed by 20-year bonds for two new debts that include $3.477 million for the Seasons Road interchange, and $3.2 million for a transformer at the east side substation, Knoblauch said.

An additional debt for the purchase of two buildings on Georgetown Road before the end of the year will be discussed later this month.

Roberts said the engineering, community development and economic development departments, which lease space, would likely move to Georgetown Road if the city buys property there, but reorganization plans have not been finalized.

Knoblauch said he worked with RBC Capital Markets as the underwriter for the sale of the debt along with Steve Szanto, financial advisor from Sudsina & Assoc.

E-mail: lfreeman@recordpub.com

Phone: 330-688-0088 ext. 3150