The East Bethel City Council on Feb. 5 approved issuing bonds to refund the city’s 2010 general obligation utility bonds for a future savings of $1.5 million, which is about $220,000 more than expected, said Stacie Kvilvang of Ehlers & Associates.
There were six bidders on the bonds, which were awarded to Piper Jaffray at an interest rate of 3.64 percent, said Kvilvang.
The bonds are structured to gain the city upfront savings in the first several years, buying the city some time for development and new water and sewer connections to begin generating revenue before the city must begin paying principal payments.
Principal payments on the new bonds will begin in 2019.
The city’s payments on the debt for the new water and sewer system necessitated a 15.1 percent levy increase in 2014.