Refinancing to save Manawa $179,940
This refinancing of a current debt will save the city $179,940 over the next 11 years.
Philip Cosson, CIPFA and Executive vice president and financial advisor for Ehlers, presented the plan to the City Council at a special council meeting on Monday, Jan. 30. He said it was a competitive bid process.
Banking institutions made bids on the bonds, with Bankers' Bank of Madison being awarded the bid. First State Bank of New London was also part of the winning bid of Bankers' Bank. The true interest rate over the next 11 years of borrowing will be 2.2656 percent.
Baird of Milwaukee's bid had a true interest rate of 2.739 percent, while Bernardi Securities Inc. of Chicago, Ill. proposed a bid that had a true interest rate of 2.991 percent.
The city will save between $14,000 and $18,000 each year through 2016. After that, the savings drop, with the lowest being $3,982 in 2022. The net PV benefit will be 11.162 percent. Cosson said when that benefit is 2 percent or 3 percent, refinancing is recommended.
The council also accepted the City Clerk's appointment of Mary Eck as a special voting registration deputy at Little Wolf High School.
The meeting also included an open discussion with the Town of Little Wolf regarding the Manawa Dam. A video was shown, which included footage of the condition of the part of the dam that is underwater. The main concern brought up was the cost of the project. There was also concern expressed that North American Hydro wasn't fulfilling its end of the contract.
A majority agreed that it would be best to fix the dam when the water is drawn down because then an accurate assessment of the dam can be made and the repairs can be seen.
It was decided, that with the help of the city attorney, the city will request more information from the engineering firm.
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