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Utility district refinances bonds

The LaGrange County Regional Utility District has refinanced approximately $10.1 million in outstanding sewage works revenue bonds. The bond refunding will save the utility district approximately $2.155 million over 23 years and will result in an annual reduction in debt service of approximately $212,800 for the first year and an approximate average of $88,400 for the remaining 22 years the bonds will be outstanding.

    The utility district is constantly looking for ways to meet financial challenges while providing the quality and reliable services customers expect. The savings from the refunding is one example of the initiatives pursued to meet those challenges. “We expect the benefits of this transaction to strengthen the district’s ability to maintain the health of the collection and waste water treatment systems at the lowest possible cost to customers,” stated Ronald Kantorak, president of the utility district’s board of trustees.

    The refinancing was accomplished in part with the help of the district’s financial advisor, Umbaugh and Associates. “The savings achieved from the bond refunding exceeded our expectations,” said Jeff Rowe of Umbaugh and Associates. “The results reflect the bond market’s favorable view of the district’s utility debt, and is a reflection of the utility’s financial and management strength.”