Putnam PSD to save $15K per year by refinancing
HURRICANE -- Putnam Public Service District has refinanced two of its sewer revenue bonds at lower interest rates, and expects to be able to invest the savings back into the sewer maintenance and repair.
According to a news release from the Putnam PSD, the district refinanced two existing, high-interest sewer revenue bonds that were used to fund previous projects to expand the wastewater system. The PSD sold a new Series 2013A bond to investors with an approximate interest rate of 4.5 percent in order to pay off the outstanding money owed on a Series 1995 bond (6 percent) and a Series 2002A bond (5 percent).
"The new bond will save the District approximately $15,000 per year," Putnam PSD General Manager Mike McNulty said in the news release. "As we are community-owned, that is money that can now be reinvested into wastewater system maintenance and upkeep."
Over 30 years, the new bond will save the District about $400,000, said Joe Miller, chairman of the PPSD Board of Commissioners.
"We are ever mindful of the debt burden we pass along to the next generation of Putnam County citizens," Miller said. "We are pleased that the Public Service Commission supported this critical investment in our fiscal future."
The District expects the $400,000 to help cover the cost of maintaining and replacing aging manholes, sewer lines, and pumping stations over the next three decades.
The new bond was approved by the Public Service Commission of West Virginia on June 25 and will mature on April 1, 2042.
For more information, visit PutnamPSD.com or connect with Putnam PSD on Facebook, Twitter, Tumblr, Pinterest, Instagram and Vine.