City Reduces Annual Debt Services By $500,000
Common Council authorized the refunding of Bonds including the 2006 and 2009 Sewerage System Revenue Bonds, totaling just more than 5.1 million dollars.
The Common Council voted in favor 10-0 to approve the motion made by Alderman Wagner and seconded by Alderman Chris Jockheck.
Jason Zaleski of District 7 said, “Bonding can be a necessary tool sometimes in running a city and to hear that we are actually saving money is really good news”.
The City received seven bids on Tuesday morning, with the winning bid going to Hutchinson, Shockey, Erley & Co out of Chicago, IL, who bid an inflationary rate of 2.142%. As a result, the city will free up more than $500,000 in annual debt services.
This all comes after Moody’s Investors Service has assigned an Aa3 rating to the City of Marshfield, WI’s $5.1 million Sewerage System Revenue Refunding Bonds, Series 2018. Moody’s maintains the Aa3 rating on the sewer system’s outstanding rated debt.
Common Council approved the resolution for refunding the bonds on February 28th. The settlement is scheduled to take place on May 2nd. The refunding of the debt reduces the debt service from 5.1 Million to $4,960,000 and annual payments of $1,880,000 to $1,320,000. Which will free up money for other projects as desired by the Council.