Todd Samuelson of H.J. Umbaugh & Associates of Mishawaka came before the Warsaw Common Council Monday night to ask if the city was willing to save money by refinancing the remaining balance of a $12.3 million sewage bond that is now in its 10th year.
While slightly confusing to the general public, the bottom line for the refinance would mean the city would pay off the bond with annual payments totaling up to $740,000 with the final payment being due January 2023. In the end, the plan would realize a savings of just over 11 percent. “I don’t want to say it’s a no-brainer, but I’d definitely recommend that one,” said Samuelson, saying the cost savings will be between $729,000 and $829,000 based on future interest rates and the possibility of yet another refinance.
Although the council did not have to vote on the bond refinance, they did anonymously agree to have Samuelson move forward with the paperwork and take advantage of the cost savings. “It may allow us to hold (sewage) rates down … and keeps some cash flow,” said Mayor Joe Thallemer. The refinance is expected to be reviewed and voted on at the June 3 meeting.
In other news, a compliance review form for a 2003 tax abatement for Zimmer was presented to the council for approval. It was noted that Zimmer located the missed tax abatement forms. The original 10-year tax abatement was granted in 2004 and the company said it has added the 270 additional jobs for all three incorporated entities, and an additional 360 additional jobs. The tax abatement was only one year remaining on its terms.
The next Warsaw Common Council meeting will be held at 7 p.m. Monday, June 3, in the large meeting room of the city hall building.