URNRD refinances bonds on Rock Creek project
Favorable interest conditions led the Upper Republican Natural Resources District to refinance the existing bonds sold for the Rock Creek Augmentation Project in southwest Dundy County.
The board approved a resolution approving a refunding and re-issuance of bonds during their Dec. 4 regular meeting in Imperial.
Manager Jasper Fanning told the board the district will save about $2.15 million over the life of the bonds.
Bond payments will drop significantly as a result of a combined interest rate of 3.315 percent on the newly-issued bonds.
That represents a 30 percent decrease in interest from the original issue, which carried an interest rate of 4.738 percent.
The original bonds on the project were issued in 2013. The $2.15 million in savings will be realized over the life of the bonds, which have a final maturity date of 2039.
Fanning said the interest savings exceeded expectations. The original target for savings was $1 million.