Tonawanda News — The Erie County Legislature has approved a bond refunding resolution that is expected to save taxpayers more than $2.6 million over the next 12 years, according to Erie County Executive Mark Poloncarz.
The refunding of the series of bonds is expected to reduce the county’s debt service payments by an average of $221,772 annually over the next 12 years.
In 2013, $330,633 is expected to be saved.
“I am glad that the legislature realized the significant savings that could be attained by refunding these bonds in 2013 and not at an earlier date, as some suggested. We will now take advantage of historically low interest rates,” Poloncarz said. “By waiting until now to do the refunding, we have realized an additional $1.1 million in savings that would not have been available last year. While a refunding is no silver bullet solution, every little bit helps, and the more than $330,000 in savings we will see this year will assist as we work to rebalance the 2013 budget.”
Refunding bonds includes a process in which an older bond is redeemed and replaced a by new bond with more favorable interest rates.
The county will conduct the refunding in collaboration with the Erie County Fiscal Stability Authority in early spring 2013 in conjunction with the county’s 2013 capital borrowing for construction projects.
“I look forward to working with ECFSA Chairman Sampson on this refunding program. We have worked closely and cooperatively with him and his fellow directors throughout 2012 and now into 2013, and our efforts are paying off with an increased partnership resulting in greater savings to taxpayers,” Polocnarz said.