Savings ahead for Inwood city council

Posted March 17, 2020 at 6:48 pm

The Inwood city council meet in regular season Monday, March 9 at the Inwood community building. Chip Schultz with Northland Securities went over the bond sale summary regarding refinancing the city’s 2013 general obligation bonds. Schultz explained to the council how the dislocation in today’s financial markets is proving to be a benefit during the city’s refunding. “Bottom line, when we started looking at refunding, the city was expected to save about $88,000. By contributing cash and reducing three maturities off the refunding, that savings is up to about $205,000. So that’s a true net savings over time to the city and its taxpayers,” says Schultz. “Savings as a percentage of the principal amount being refunded was estimated at 6 percent. It is now estimated at 12 percent. The city is at four times what would be considered sufficient. That is a phenomenal savings for the city,” Schultz continued. The final payment date is now June 1, 2030.

Find the full story in this week’s West Lyon Herald,