Lincoln City City Manager David Hawker recently announced that he expected the city to save a significant amount of interest through a resale of some of the city’s outstanding municipal bonds. But he said in a news release issued this morning that the savings on this week’s 2005 sewer bond resale, which takes advantage of current low interest rates, the savings were quite substantial; well over a million dollars which Lincoln City taxpayers won’t have to pay.
Hawker praised city Financial Planner Ron Tierney for assembling a re-auction of the bonds which took several months to accomplish. Hawker said Tierney re-packaged the current bonds which were earlier auctioned at an interest rate of 4.53% and put them back on the bond market for re-sale. The $8.9 Million still unpaid were re-sold at a rate of 2.44% – a savings of $1.224 Million. Hawker said “Bonds are paid with sewer bills, property taxes and system development charges. The amount we need from these will be less.”