Bond ordinance frees up $350,000 for Huntingburg

A bond approved Thursday will save the City of Huntingburg $100,000 in interest fees and free up about $350,000 in restricted funds.

Buzz Krohn, of O.W. Krohn & Associates of Westfield, informed the council that if they refinanced an existing water works bond with Old National, the city would be able to drop the current rate of 2.9 percent to down to 1.9 percent.

The lower rate would save the city about $100,000 in interest payments on the remaining seven years of payments on the original bond issued. Additionally, $350,000 of the city’s Debt Service Reserve Funds would be relieved.

According to Mayor Denny Spinner, those funds would  be used towards the Fourth Street Water Main project listed in the Stellar Initiative. “That will really give us the ability to finance several projects without having any affect on our utility rates or our borrowing levels,” Spinner said.

Old National Bank committed $100,000 in unrestricted funds to Huntingburg’s Stellar initiative and identified this new bond as a way to assist the city in the Stellar Communities initiative. Spinner commended Old National for coming forward to assist.