In a recent government meeting, officials discussed the potential refinancing of Special Service Area (SSA) bonds, which could yield significant savings for taxpayers. The conversation highlighted a graph illustrating interest rates over the past 20 years, noting that current rates are slightly below the historical average. The village recently issued bonds, and the discussion centered on the opportunity to refinance existing bonds at lower interest rates.

Currently, the SSA bonds have a net interest rate of approximately 5%. The proposed refinancing could reduce this rate to between 3.86% and 4.03%, resulting in annual savings estimated between $12,000 and $20,000. Over the life of the bonds, total savings for taxpayers could range from $127,000 to $189,000.

The meeting also reviewed past refinancing efforts, specifically from 2015, which had previously saved taxpayers around $1.8 million. The new refinancing could add to these savings, bringing the total estimated savings to approximately $2.03 million. Individual savings would vary by property type, with single-family homes projected to save over $7,000, duplexes around $592, and townhomes approximately $395.

Officials emphasized that the refinancing process would not extend the term of the bonds and that all costs associated with issuance are included in the savings estimates. The bonds are not callable until March 1, 2025, but refinancing could occur within 90 days of that date, potentially as early as November.

The discussion concluded with a call for direction on whether to proceed with preparations for the refinancing, underscoring the importance of timing in capitalizing on favorable market conditions. The officials expressed confidence in the projected savings but acknowledged the uncertainty of future interest rates.