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Village Refunds Bonds
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On Monday, August 4, the Pleasant Prairie Village Board authorized the issuance and sale of General Obligation Refunding Bonds totaling $2,010,000. The Village opted to refund the bonds in order to realize a savings on interest payments. Due to this refunding, the Village will realize a savings of $67,297 over a period of four years.
This is the second time within nearly two-months that Pleasant Prairie has refunded bonds for the purpose of realizing an interest savings. On June 2 of this year, the Village Board had authorized the issuance and sale of General Obligation Refunding Bonds totaling $2,940,000 for an interest savings of $100,844.
“Our aim is to be as prudent as possible with every dollar,” commented Mike Pollocoff, Pleasant Prairie Village Administrator. “Earlier this year, when Standard & Poor’s raised the Village’s long-term credit rating, it gave us the opportunity to re-evaluate the interest rate at which some of the bonds were issued. When we can realize enough of a savings, it becomes worthwhile to refund or refinance the instrument.”
The improved credit rating along with current market conditions contributed to the interest savings. The Village uses this financial strategy, incorporating two shorter-term financial instruments, to obtain better interest rates for longer-term investments.