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Ypsilanti, MI, March 4, 2016: The City of Ypsilanti has successfully reduced 30% of its Water Street debt through bond refinancing. The City owed $20,648,975 in principal and interest that has loomed over the City for the past 10 years. Annual payments were to begin in May 2016 of $1,380,000 for 15 years at 6.16% interest.
On March 1, in consultation with a large number of experts, the City submitted over $10M of debt refinancing bonds to the Bond Market. The new bond interest rate is 3.33%. The City also did a cash pay-down of $2,255,000 of the debt principal. As a result, the City now has a $6M reduction in principal and interest payments on the Water Street debt over the next 15 years, a 30% reduction in the original amount.
The City’s annual payment will be reduced from $1,380,000 to approximately $924,500, saving $455,500 for fiscal year 2016-2017.