For Immediate Release | March 17, 2020
Avon Saves $635,000 with Refinancing
Avon, CO – The Avon Town Council unanimously approved an opportunity to refinance the Series 2010 bonds with a 1.23% interest rate lock at its March 10th regular meeting. The refinancing will result in a net savings (after all costs of refinancing) in the amount of $635,000. The Series 2010 bonds were originally issued to refinance the Fleet Maintenance Facility bonds originally issued in 1998 and to obtain an additional $3 million in proceeds for the Town's 20% match of the federal grant used to construct the Avon Regional Transit Facility.
The original amount of the Series 2010 bonds was $6,680,000 with interest rates ranging from 2.00% to 5.00% and a maturity date of December 1, 2030. The refinancing will refund the outstanding debt balance of $4,050,000 with an interest rate of 1.23% and will maintain the current maturity date of December 1, 2030. “We are very pleased to take advantage of the recent dramatic drop in interest rates which will save Avon taxpayers additional monies,” says Scott Wright, Assistant Town Manager and Finance Director. The projected savings was $360,000 two weeks ago; however, as interest rates dropped, the savings increased dramatically.
The Series 2010 bonds were issued as Certificates of Participation. Certificates of Participation are a common form of municipal debt that is not a general obligation of the Town and is not subject to voter approval under the Taxpayer’s Bill of Rights.
Avon Council passed first reading of Ordinance 20-04 on March 10th and will conduct a public hearing and consider Second Reading on March 24th. Any public comments or questions may be directed to Amy Greer, Finance Manager, at firstname.lastname@example.org or (970) 748-4044.
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