Cary pays off bonds early

The village of Cary decided to repay $1.3 million on a water and sewer bond five years early, which will save taxpayers nearly $160,000 in future payments, village officials said.

The bonds were issued in 2002 to fund water and sewer improvements, and would have expired in 2015, Village Administrator Cameron Davis said.

The village is taking its one shot at paying the bonds off early by using unobligated money from the water and sewer fund, Davis said. The village board voted Tuesday night to approve the measure.

The bond payment would have ranged from $215,000 to $250,000 yearly for the next five years, Davis said. The actual savings from the early repayment is $189,000, but in calculating its actual savings the village subtracted the amount of money it would have earned from having the money invested, Davis said.

“Investment rates are so low right now, that’s why it makes complete sense to pay it off early,” he said. “Because the village is in good financial shape we have the ability to write this big check. You don’t see a lot of community paying bonds early. It’s (about) running a place like a business.”

The savings, which is equivalent to about $32,000 per year, will be applied to paying off remaining debt from other bond series or for future capital improvement projects, Davis said.

The bond payment will be made May 1, Davis said.