By Laura Bollin
Evergreen Park will refinance two bonds in a move expected to save the village about $72,000 in interest.
Trustees voted unanimously Aug. 7 approved refinancing $2.2 million in general obligation bonds issued between 2002 and 2004. The bonds are eligible to be refinanced at lower interest rates, said Evergreen Park finance director John Sawyers.
“The new loan is going to pay off the older, higher interest rate loans,” Sawyers explained. “It is like refinancing your house. The $72,000 savings is the difference in interest between the new debt and the old debt.
“These bonds are eligible for refunding, and rates are at a 40-yearlow right now. It is a terrific opportunity to save more than $70,000 without much effort. The village is benefitting from historically low municipal bond rates.”
The $2.2 million represented a number of different bonds, the funds from which went toward capital improvements, Sawyers said. The bonds were going to be put up for bid later this month, and village officials are hopeful they can be sold by the end of August, he added. Purchasers of municipal bonds are typically large financial institutions, Sawyers said.