Noblesville Saves $14.6 Million in Bond Refundings

Posted by Noblesville Economic Development under News

By refinancing 10 bonds, the City of Noblesville is expecting to save a total of $14,672,701 of taxpayer dollars.

“We strive to be as efficient and use taxpayers’ dollars as wisely as we can,” Mayor John Ditslear said. “In addition to running a lean government, we have found alternative ways to save funds such as utilizing better interest rates.”

Similar to mortgages and homeowners getting lower rates and interest costs, the city has taken advantage of lower bond rates.

“We have always had an AA or AA+ bond rating and what that means is we always borrow at very favorable rates for municipal bonds. However, the refinancings are all a function of interest rates nationally being at a lower rate than they were during the early- to mid-2000s when we financed these projects,” City Attorney Michael Howard said.

Howard said refundings have taken place during the past three years.

“We have a team that has put together the transactions these savings with the strong support of the mayor and common council,” Howard said. “The financial experts who do these financing keep track of interest rates and when there are significant financial savings to the city. City Securities has acted as our investment counselor for years and informs us when we can realize savings by refinancing.”

Noblesville can begin annual savings now by making the payments and the savings will continue through when the bonds are fully paid, which range from 2024 to 2032.

“For all of our refunding bonds, we did not extend the term of any of the payments. It also reduces some annual costs too,” Howard said. “These are big savings. For 146th Street, we still owe $37 million on that project. Refinancing generates almost $4 million in savings on that project alone.”

Projects and the amount saved through bond refunding include:

Project                                                 Gross savings

Hague Road                                        $991,943

Corporate Campus East                   $2,448,417

Little Chicago Road                           $533,230

Fire Station No. 5 & 6                       $578,372

City Hall                                              $846,045

146th Street                                        $3,914,131

Hamilton Town Center                    $1,636,077

Hazel Dell Road                                 $2,491,630

Sewage works                                     $1,232,856

     Total                                        $14,672,701