Debt Refinancing Saves Roselle Taxpayers Money

With interest rates at a historical lows, many people have refinanced their mortgages in order to save money. The Village of Roselle looked at the savings to its taxpayers when it recently refinanced a part of its debt, which will amount to over $124,000 in savings.

According to Finance Director Pamela Figolah, the Village recently refinanced $1.98 million in debt certificates at a savings of over 6 percent. The Village did not extend the amount of time necessary to pay off the debt, which will be paid off in 2016. The debt was originally incurred with the construction of the Village's Public Works facility in 1993 and Village Hall in 1996, and was refinanced to a lower interest rate in 2001.

This year was the first year that the debt was callable, according to original documentation. Knowing that the opportunity to refinance was coming up this fall, the Village's finance department staff began reviewing the debt certificates last spring and contacted underwriters to review rates and possible savings.

After receiving reports that the calculated savings passed on to taxpayers would be significant, the Village Board passed an ordinance in November 2010 initiating the refinancing efforts with parameters requiring a savings of at least 3 percent. The bonds were sold on November 30, with a savings yield of 6.07 percent

“We are always looking for opportunities to save our taxpayers money,” said Mayor Gayle Smolinski. “The recent refinancing of our debt is part of a continual effort to exercise fiscal responsibility.”