Cedaredge officials are hoping for a good interest rate when an investment bank begins marketing $945,000 in street improvement bonds approved by the town board on Nov. 9.
At a Nov. 9 special meeting, trustees and the mayor adopted an emergency ordinance authorizing sale of the municipal bond issue.
If the bonds had been marketed the prior week, they would have gotten an interest rate of 3.83 percent and trustees are hoping they can get a similar low rate.
By adopting the ordinance as an emergency, it went into effect immediately allowing the town's investment bankers to begin marketing them at once in hopes of obtaining the same, or possibly even better, interest rate.
The town board opted for a 25-year payoff that will require about $60,000 per year in semiannual principal and interest payments to fully retire. The town will have a penalty-free early payoff option after the tenth year.
The bonds will pay for the town's major street improvements project funded by a one-half percent sales tax approved by voters in 2007. That one-half cent tax revenue stream has been generating about $85,000 per year.
The bond issue is a revenue bond. The money being pledged to pay them off is coming exclusively from the sales tax. There is no property or property tax obligation, town officials confirmed following the special meeting.blog comments powered by Disqus