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Bond Refunding Approved
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On Monday, June 2, 2008 the Pleasant Prairie Village Board authorized the issuance and sale of two General Obligation Refunding Bonds totaling nearly $4,000,000. A savings of $100,844 will be realized due the refinancing of a $2,940,000 bond originally issued in March of 1999. In addition, a $950,000 balloon payment for Sewer Utility debt originally issued in 1999 will be refinanced.
“The purpose for refinancing the $2,940,000 bond is to realize an interest savings. Over a period of seven years, the Village will realize a savings of $100,844 due to the refinancing,” commented Kathy Goessl, Finance Director for Pleasant Prairie. “Our goal is to be as prudent as possible with every dollar.” Earlier this year Standard & Poor’s raised the Village’s long-term credit rating to AA- from A+. The Village’s improved credit rating along with current market conditions contributed to the interest savings.
“The second refunded general obligation bond, totaling $950,000, will be used to pay a balloon payment for original debt issued in 1999 for the Sewer Utility,” added Goessl. The 10-year note sold at a premium, which resulted in a net interest rate of 3.86%. The Village uses this financial strategy, incorporating two shorter-term financial instruments, to obtain better interest rates for longer-term investments.