Sylvan Township is looking for a better rate to hopefully see some savings

Sylvan Township and Washtenaw County are hoping for a better interest rate for the bond the county holds for the Sylvan Township Water and Wastewater Systems.

At its July 5 meeting, the Sylvan Township Board unanimously approved a resolution giving Washtenaw County the go-ahead to seek refinancing of the water and wastewater system improvements refunding bond series from 2010.

The county requested the township board’s authorization to seek refinance of the bond at a lower rate. The bond is currently at 4 percent. The county will seek savings on this rate.

The Washtenaw County Commissioners also unanimously approved their resolution to approve this refunding bid.

The Sun Times News followed up with Sylvan Township Supervisor Kathleen Kennedy about this decision.

Kennedy said this is the bond that the residents are paying 4.4 mils to pay off. She said the county now has an opportunity to get a better interest rate than 4 percent.

“Washtenaw County Bond Counsel Peter Ecklund was on Zoom and advised that there could be an overall savings of approximately $130,000, depending on the interest rate secured,” Kennedy said by email. “He did say in the last ten days or so, rates are favorable so they want to move on this now.”

She added, “If there is not a savings to be had, they will not pursue the refunding.”

“Mr. Ecklund said the costs of the refunding will be approximately $24,000 and that will be taken off the top before the township realizes the savings,” said Kennedy.

There is a little less than $4 million left on the bond.

“If we did get savings, it would be spread out over the remaining four years of the bond,” Kennedy. “After the bond is paid off, the 4.4 mils continues however, to pay off the advances the county has given to the township when the 4.4 mils was not raising enough money to make the bond payment.”

She added, “But the end is in sight.”

“I believe this will be good for the residents because any savings will go a long way in our township budget,” Kennedy said. “I appreciate that county is moving this forward to assist us in this bond debt burden.”