News release from the City of Fort Wayne:
City Utilities Saves $3 Million
Savings will Improve Infrastructure, Strengthen Neighborhoods
(April 8, 2013) – In another move to save customers money, Fort Wayne City Utilities announced today that its recent bond refinancing has saved about $3 million in reduced interest and lower monthly payments.
Late last year City Utilities refinanced approximately $29 million in Sewage Works Revenue Bonds.
“We continually look for ways to save money while meeting the needs of our customers,” said Kumar Menon, Director of City Utilities. “Three million dollars in savings will not eliminate the impact of having to invest millions of dollars in our sewer system, but it will help us meet our requirements, in ways that have the least impact on our customers. These savings will help us with that objective.”
Money saved in the refinancing will help City Utilities reduce future rate increases, as it continues to work to meet the guidelines of the unfunded Federal mandates to upgrade the City’s sewer system. The savings will assist in continued neighborhood sewer improvement projects, as part of the Consent Decree.
The bonds date back to 2002 and 2003, at interest rates ranging from 2.0% to 5.5%. The interest rates to refinance the outstanding debt range from 1.0% to 1.45%. City Utilities will save money through lower annual payments over the next ten years.
“We are pleased with the results of the refinancing. It shows City Utilities commitment to running an efficient utility that meets the needs of the community in a cost effective way. It’s gratifying to be recognized as a fiscally strong utility because it’s something we take seriously and work hard to maintain,” said Mayor Tom Henry.
Fort Wayne City Utilities has a track record of looking for ways to reduce costs and save money. Recent technology improvements, including automated meter readers, e-billing, automated technology at City Utility facilities and staff cross-training, have created efficiencies that have resulted in real savings and more investments in neighborhood infrastructure improvements.