City will refinance bonds to save cash
The Rosemount City Council could save more than $200,000 by refunding some of its bonds. In laymans terms, the city will refinance some of its debt to get a better interest rate.
Finance director Jeff May told the council during a work session Oct. 13 that the main reason for doing the refundings is because of the market and lower interest rates available to the city.
"It could save a pretty significant amount of money," said May.
In his memo to the council May said the estimated interest savings over the life of the three city issues is $222,000. The estimated interest savings from a port authority issue is $95,000. The city will not extend the life of any of the debt.
The savings will be realized from the city's Water Core Fund and Storm Water Core Fund.
The council and port authority approved the refundings during their regular meetings Oct. 19.
Bids will be open until Nov. 16 at the offices of Springsted Incorporated. The amounts will be tabulated later that day and the final approval will be considered at that night's council and port authority meetings.
On the other end of the spectrum the city will take an 18 percent hit in the pocketbook for health insurance.
"We were shocked when we got our insurance renewal," said Emmy Foster, the city's assistant administrator. The city anticipated a 10 percent increase.
After receiving the news in September, the city put out bids to see if they could find a lower number. The city is currently a member of the Southwest West Central Service Cooperative,
While the city received a slightly lower increase of 16.9 percent, the plan was not comparable to the city's current coverage. So the council opted to stay with the current plan.
The city has incorporated the high number into this years tax levy said administrator Dwight Johnson.
The city saved a little money by changing dental insurance providers. By switching from Delta Dental to Guardian the city will save 4 percent in premiums and will receive a higher percentage of services under the new plan.