By Tony Wittkowski | Business Reporter | The Herald-Palladium
ST. JOSEPH — Royalton Township saved thousands of dollars in 2008 after it got a loan to pay for bonds that covered five water districts.
Manager Steve Tilly approached trustees Tuesday with the idea of refinancing the 2008 bond that combined the costs of those five districts.
“We took out a $2.5 million big loan and paid all of all the water districts for a cheap interest rate,” Tilly said. “We saved a couple hundred thousand in the process because we owed a little bit on each one of them.”
With interest rates continuously dropping, Tilly said the township can save $115,000, after expenses over the next 10 years. Tilly said the original 2008 bond would be paid off in 25 years.
With board approval at Tuesday’s board meeting, Tilly will now work with a financial consultant to see if the option of refinancing the bond is feasible for the township.
“It’s something we would consider if it makes financial sense and if we can save money,” Tilly said. “Like we did last time, rather than bonding, we could go to the banks and get a good rate.”
Tilly said the township has a AA-plus credit rating.
Clerk William Foust said he was in favor of having Tilly look into refinancing the bond because of the potential $115,000 taxpayers could save.
“It’s worth the time to check it out,” Foust said. “That would be a lot of savings for the township.”
Trustees also approved the Medic I audit that was recently completed. Supervisor Robert Basselman said the township’s approval was needed because it was a part owner of the emergency response service.
The board also approved a fall conference for its code official in September.