Cottage Grove bond refinanced
The Cottage Grove Finance Department recently reviewed outstanding debt and found an opportunity for interest savings by refinancing a 2004 taxable general obligation tax increment bond.
A decade ago, the city issued a $1.7 million bond to fund improvements to the city’s Gateway District, with repayments being made from generated TIF revenues. City Finance Director Robin Roland said in a memorandum to city officials that the market interest rates are at a level where the city could see interest savings by “calling” the existing bonds and refinancing them with the sale of new debt.
The City Council approved the sale of a $1.43 million GO bond, which would continue to be repaid by TIF revenues.