Village Pays Off Bonds Early, Saves Money on Interest

Frankfort Village Board members unanimously approved the early payment of a series of utility bonds at Monday's meeting.

The bond payment will cost $2.425 million but will save the village about $200,000 in interest payments over three years, said Trustee Cindy Heath. The money will come from Frankfort's sewer and water funds, and the bonds will be paid off Sept. 15.

"On a day where the financial markets in the United States and, frankly, across the world were in turmoil, we have some good news for the people of Frankfort," said Mayor Jim Holland as he introduced the agenda item.

The Series 2002 General Obligation Refunding Bonds are connected to the utilites that serve the eastern part of Frankfort, which includes the Prestwick area. Board members discussed the early bond payment during . Monday's action gave the official go-ahead for the bond payment.

Village Administrator Jerry Ducay complimented the board on being able to resolve this piece of municipal debt ahead of schedule.

"The Village of Frankfort is able to pay off the bonds because of the conservative management of this group and is able to beenfit the community by saving the interest," he said. "And that's an important thing to do, especially today, when discussions are centered on how governments are spending more money than they have."

The village still has another series of bonds outstanding, but they couldn't be repaid early, Heath said, adding that those bonds represent the last of Frankfort's bonded debt.