The City of Derby will save between $200,000 and $230,000 after voting last month to refinance its debt.
The city issued bonds of $6.4 million in 2003 to pay for various road and school improvements. The city still owes $2.9 million on that debt.
City Treasurer Keith McLiverty told the Aldermen last month the city could bring its interest rate on the debt down to 2 percent, much less than the 4.35 percent the city was paying.
Aldermen unanimously approved the refinancing.
McLiverty said the fact the city is able to refinance its debt is an indication of the city’s solid financial health.
“We continue to have a strong fund balance and adequate reserves (5 percent of expenditures) , our debt remains well below the recommended levels (we are at 8 percent of expenditures), our tax collection rate is strong (we are over 96 percent steadily over the last five year), we continue to have a pay as you go Capital Plan — and the BOAT (tax board) always funds the pension plan at the actuary recommended level,” McLiverty said in a letter.
