The Suwanee city council adopted a bond resolution and bond purchase agreement May 24 and voted to approve the refinancing of the city’s outstanding Open Space bonds, resulting in savings of $3 million over the life of the bond for Suwanee taxpayers.
Based on current market conditions and Suwanee’s AAA bond rating, the city was able to forward refund the approximately $12.3 million bond and lock-in at a 1.96 percent rate, formerly 4.3 percent, with JPMorgan Chase. This option provides a fiscal year comparison savings of $3 million, as well as shortening the outstanding debt from 16 to 10 years.
Last fall, Suwanee refinanced 2006 revenue bonds that were used to help fund construction of Suwanee City Hall, saving the city about $180,000.
“This allows us the opportunity to save the taxpayers millions of dollars by getting out-of-debt sooner,” said Suwanee Mayor Jimmy Burnette. “Like the previous refunding, it’s a win-win situation.”
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