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The village council was poised to vote Tuesday on a contract to refinance the amounts remaining on bonds issued in 2005 to take advantage of lower interest rates. The new bonds will pay off the principal balance of $5,745,000 remaining after seven years, said Village Administrator Tim Gillian. The current bonds, with principal plus interest, total $9,298,000.
"After refinancing at the lower rate, the principal and interest totals will be reduced to approximately $9,000,000 and continue to mature in 2025," Gillian wrote in an email. The interest rate on the Series 2005 Bond is 4.71 percent and current rates are falling between 2.25 and 2.5 percent which could produce a net savings between $300,000 and $360,000, according to Village Clerk Vanessa Moritz.
Consultants Kane McKenna, as financial advisers for Forest Park, will be paid a flat fee of $25,000 to shepherd through the bond refinancing. The contract was to be approved by the village Tuesday.