Politics & Government
Fenton Refinances Fabick Property Bonds
City saves thousands and will be able to pay off debt one year early
The City of Fenton stands to save thousands of dollars refinancing bonds sold for purchasing the Fabick property.
By refunding $5,985,000 in outstanding revenue bonds, originally issued in 1997 and then refinanced in 2003, the city will be able to pay off the bonds one year early and save $91,000, Finance Director Art DeWitt told the Board of Aldermen Thursday.
The bonds were originally scheduled to be paid off in January 2016 but now will be paid off in January 2015.
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The board voted 6-0, with two absences, to approve the refunding.
“Today was just a good day for the market to move in our direction, so timing is everything,” DeWitt said.
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DeWitt likened the city’s refunding of the bonds to refinancing a home.
“It’s similar to when a homeowner goes to refinance a mortgage to get a lower interest rate,” DeWitt said. “That’s basically what we did here. We discovered we could get a lower interest rate and went from a 6.5 percent interest rate to a 2 percent interest rate.”
The city used the money to buy the Fabick property for use a park and nature trail. The 125-acre park, located at 597 New Smizer Mill Road, features two lakes and 1.7 miles of nature trails, which link to the RiverChase recreation center.