Bond refinance to save Northwest Central Dispatch about $323,000

Arlington Heights has turned the bad economy into good news for communities who are members of the Northwest Central Dispatch System, by refinancing almost $3 million in bonds at a lower interest rate.

The 2.57 percent rate is the lowest for tax-exempt municipal bonds in 43 years, said Kevin W. McCanna, president of Speer Financial Inc. of Chicago, which held the sale.

The decrease in the interest rate from 4.46 percent will save the dispatch agency $323,000 over the remaining life of the bonds, which mature Dec. 1, 2022.

The bonds were sold in 2002 to remodel a building and construct an addition to the dispatch center, which is in Arlington Heights and owned by the village, said Village Manager Bill Dixon.

NWCD pays the village rent that equals the annual debt service payments on the bonds, so that amount will decrease. The savings from the refinance will be about $25,000 annually, said Thomas Kuehne, Arlington Heights finance director.

Eleven communities and one fire protection district belong to NWCD. They are Arlington Heights, Buffalo Grove, Elk Grove Village, Hoffman Estates, Inverness police, Mount Prospect, Palatine, the Palatine Rural Fire Protection District, Prospect Heights police, Rolling Meadows, Schaumburg, and Streamwood.

The village had predicted a savings of less than half what was eventually realized and was very lucky with the timing, said Kuehne.

Arlington Heights' very high bond rating improved the bidding, said McCanna.

Marshall & Ilsley of Milwaukee - the winner among six bidders - bid nine times during the online auction, and also paid a $35,000 premium, McCanna said.

"Strong cooperation serves our residents," said Village President Arlene Mulder, noting the local governments save money through the efficiencies of sharing a dispatch center plus have more dispatchers on duty in case of a disaster than a village would have on its own.

Trustee John Scaletta said businesses in Arlington Heights also benefit by reductions in NWCD costs.

The approximately $30,000 in fees, including about $8,000 for Speer, will be rolled into the bond issue, said Kuehne.