The City of Champaign will save a total of $280,000 over the next nine years by refinancing a portion of the bonds issued in 2005 to finance construction of the new main library building. This is the third time that the City has refinanced debt in the past four years. The refinanced bonds carried an interest rate of 4.1%, while the new bonds have an average interest rate of 1.9%.
The City’s high credit rating helped it achieve this low rate of interest. The City holds triple-A bond ratings from Moody’s Investors Services and Fitch Ratings. No other Illinois municipality outside the Chicago metro area has a AAA credit rating.
The City pays debt service on the library bonds from three sources – its General Fund, the Library Operating Fund, and the Library Improvements Fund. The savings will help the City cover rising costs projected for the next fiscal year.
The bonds were sold to Siebert, Brandford, and Shank & Co., a female and minority-owned investment banking firm. In addition to excellent execution of the bond sale, contracting with Siebert furthered the Council Goal to increase minority and women-owned business opportunities.
Further information can be obtained by contacting Richard Schnuer, Finance Director, at 217.403.8943.