Fort Wayne, Ind. said it would be able to reduce future sewer rate increases with $3 million of net-present value savings achieved in a late-2012 refunding of $29 million of sewer debt.
The Fort Wayne City Utilities refinanced bonds originally issued in 2002 and 2003, and saw interest rates that ranged from 1% to 1.45%, down from original rates of 2% to 5.5%, according to the city.
"We continually look for ways to save money while meeting the needs of our customers," Kumar Menon, Director of City Utilities, said in a statement. "Three million dollars in savings will not eliminate the impact of having to invest millions of dollars in our sewer system, but it will help us meet our requirements, in ways that have the least impact on our customers. These savings will help us with that objective."
The city is in the midst of a capital project to update its sewer system to meet federal environmental mandates.
