city council

Moorhead taxpayers will pay $4.4 million less over the life of bonds issued to fund city infrastructure, thanks to refinancing approved by the City Council Monday.

“This is truly wonderful news,” city manager Dan Mahli emphasized.

The council unanimously approved the issuance and re-funding of three series of bonds dating back to 2011, 2012, 2013 and 2014. The deal, put together by municipal financial advisors Baker-Tilley of Minneapolis, achieved substantial savings on the interest paid – reducing one package totalling $28.4 million to 1.278% and another to 1.264%.

According to city finance director Jenica Flanagan, the consulting firm periodically reviews the city’s indebtedness, stepping forward when refinancing is cost-effective. The bonds have been used for a variety of infrastructure improvements.

The first package of $28.4 million has 17 years remaining on its term; its interest rate had been pegged at from 2.43% to 3.37%. Financing of the second, now totaling $11.7 million – with 10 years left to go — had been from 2.89% to 2.93% before the current re-funding.