Bond market settles in time to save Port $250,000

The Port Washington Common Council on May 5 approved a $2.9 million refinancing measure that will save the city more than $250,000.

Aldermen refinanced $1.68 million in marina bonds and $950,000 in general city bonds at an interest rate of 1.65% and borrowed another $300,000 to pay for a number of maintenance projects. 

Those projects include a roof for the street department garage, repairing the retaining wall at the police station, a trash rack on Valley Creek off Lake Street and engineering work for the Larabee Street stormwater retention pond.

Carol Wirth of Wisconsin Public Finance Professionals told aldermen that seven bids were received for the city’s bonds.

“You were very popular in the market today,” she said, noting the city had anticipated an interest rate of 1.876% in March.

The marina will realize a savings of $223,000 over 10 years, Wirth said, while the general city bonds will realize roughly $31,500 in savings.

“I think we were all pleasantly surprised by the interest rate,” Ald. Jonathan Pleitner, chairman of the Finance and License Committee, said.

Ald. Dan Benning noted that the savings weren’t assured. Although the city had anticipated savings when it initiated the refinancing in March, the bond market struggled after that and interest rates soared.

That situation has changed, he said, allowing the city to move forward.

Although the city locked in the interest rate and terms of the borrowing Tuesday, it will close on the refinancing June 8 and complete the deal on Sept. 1, when it pays off the old bonds.