City of Lincoln
2005 Media Releases
Local taxpayers will see savings of more than $3.35 million because of recent refinancing efforts by the Lincoln-Lancaster County Public Building Commission. The Commission sold about $26.4 million of refunding bonds to refinance a series of 1996 bonds at significantly lower interest rates. Those bonds were issued to finance the construction of the County-City Building and the remodeling of the Justice and Law Enforcement Center.
The 1996 bonds had an average interest rate of 5.85 percent with annual debt service payments of approximately $1.95 million. The refunded bonds have an average interest rate of 4.33 percent with annual debt-service payments of about $1.82 million. The $3.35 million in savings will accrue over the 20-year life of the bond. This transaction was approved by the County Board March 22 and by the City Council March 28.
“The Public Building Commission is thrilled to have the opportunity to serve the taxpayers of Lincoln and Lancaster County in the best way possible – by saving them money,” said County Commissioner Larry Hudkins, Chair of the Public Building Commission. “This is a great joint project that makes for a win-win scenario for everyone involved, most notably, the taxpayers. When the opportunity presented itself, we jumped at the chance to reduce all of our costs as we move forward on the bond. It’s a significant savings and we’re pleased to be able to take advantage of this opportunity.”
The 1996 bond matures in 2026. The current market’s favorable interest rates made the refinancing possible. City Finance Director Don Herz said the City has been able to take advantage of these interest rates to refinance a number of its bond issues during the past year.
The Public Building Commission is charged with acquiring and constructing facilities for City and County government. The five-member Commission includes two County Commissioners, two City Council members and one community member. The other current members of the Commission are County Commissioners Hudkins and Bob Workman, City Council members Jon Camp and Jonathan Cook and former City Council member Linda Wilson.