Plymouth Utilities Bond Refinancing Results

Refinancing Decreases Future Debt Service Payments by $1,312,634

On February 11, 2020 the Common Council of the City of Plymouth approved the 2011 Combined Utility Revenue Bond (CURB) bond refinancing resulting in future debt service savings of $1,312,634. The net future value savings is $782,121 based on the reduction of the refinanced bond amount from using the debt service reserve funds and bond premium to decrease the size of the bond sale. The savings will be realized over the remaining years of the debt payments from 2020 to 2031. The original 2011 bonds financed the Plymouth Utilities Operations Center building and water system improvements. Partial savings will be realized by Tax Incremental Finance District No. 6 with the majority of the savings for the Plymouth Utilities enterprise funds. Interest rates on the existing debt service ranged from 4% to 4.375%. The new debt issue has a true interest rate of 1.4707%. In addition, the City received a Moody’s bond rating of Aa3 which maintains the existing rating for the City of Plymouth. A link to the Moody’s bond rating press release may be found at: https://www.moodys.com/research/Moodys-assigns-Aa3-to-Plymouth-City-of-WIs-GO-bonds–PR_906305920

A pdf of the sale day report may be found here