DOWNERS GROVE – The Village of Downers Grove refinanced $8.5 million in general obligation bonds Tuesday, resulting in a savings of about $478,000, according to the village.
The bonds were issued in 2005 for the downtown Tax Increment Finance district.
The village saves money by reducing the annual payments on bonds due to interest rates that are lower now than when the bonds were issued. The bond refinancing will save the downtown TIF fund more than $80,000 per year in debt service payments.
"The savings were better than projected thanks to our AAA bond rating and high demand in the marketplace for the bonds based on Downers Grove's reputation for strong financial management," Village Manager Dave Fieldman said.
In the first quarter of this year, the village completed the refinancing of library bonds saving $132,000. In all, the village has saved $610,000 due to bond refinancing this year.