Oneida County Refunds $16 Million In Outstanding Bonds
Oneida County is primed to save $833,000 after refunding more than $16 million worth of outstanding bonds.
County Comptroller Joseph Timpano says bond refunding works in the same way as refinancing a home mortgage rate.
"The borrower, in this case Oneida County, pays off its old debt and replaces it with new debt at a reduced interest rate," Timpano said.
In this case, debt yields fell from between 3.5 to 4.25 percent to rates ranging from .48 to 2.1 percent. Timpano says the cash savings will go back to the county for future use.
"It could be used for specific programs or services or something like that," Timpano said. "Or it may just end up in our fund balance and our rainy day fund."
Since 2006, the county has refunded $47 million in bonds, totaling savings of about $2.4 million. Timpano says he expects the bonds to be paid off by 2021.