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Cottage Grove bond refinanced

News Cottage Grove,Minnesota 55016
SWC Bulletin
Cottage Grove bond refinanced
Cottage Grove Minnesota 7584 80th Street South 55016

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.