City of Melbourne to Save Up to $1.8 Million Over Next Decade in Water and Sewage Refinance Proposal
By Space Coast Daily // September 25, 2020
historically low-interest rates in refinancing proposal approved during recent City Council meeting
BREVARD COUNTY • MELBOURNE, FLORIDA – The City of Melbourne is poised to save up to $1.8 million over the next 13 years by taking advantage of historically low-interest rates in a refinancing proposal that was approved during last night’s City Council meeting.
During the meeting, City Council approved a resolution authorizing the issuance of a Taxable Water and Sewer Refunding Revenue Bond, Series 2020, which will lock in today’s rate of 1.69% for 2 years and 1.38% for the remaining 11 years, as long as the City can convert the bonds to tax-exempt bonds in FY2023, which is likely.
This will save the city at least $1.5 million and as much as $1.8 million over the next 13 years. Principal and interest payments on the outstanding debt will be reduced an average of $120,000 – $150,000 per year.
Tax-exempt municipal bonds are debt obligations issued by public entities to fund large-scale public projects like the City’s water and sewer system.
For more information, please see the Taxable Water and Sewer Refunding Revenue Bond, Series 2020 Item Report that was presented to Council as part of the September 23, 2020, agenda package.