MAYVILLE - Susan Marsh, Chautauqua County finance director, successfully negotiated the refinancing of two public improvement serial bonds in an effort to reduce the financing costs of this debt.
The work resulted in refunding $15,765,000 of debt at lower rates. Over the 18-year life of the bonds, the refinancing will cut the costs paid by the taxpayers of Chautauqua County by more than $1.2 million.
"The refunding process started in May of this year but was put on hold in July due to an unfavorable shift in borrowing costs," Marsh said. "We were ready to move quickly when the rates became favorable this fall and closed the refunding on Oct. 30."
"I have been working closely with Susan and her finance team to be prepared to make the necessary decisions to seize any and all viable options to improve our financial position," said Chautauqua County Executive Greg Edwards. "This is a clear example of my team taking advantage of a business opportunity that directly benefits county taxpayers, and I congratulate Susan and her team for this hard work and successful transaction."
The effective interest cost of the new bonds to the county is 2.54 percent with an average yearly savings around $68,000. The savings from the refunding will start in December with a savings of $65,858.