Reissuing bonds, adjusting loans saves township $112,138

BIG RAPIDS TWP. — After issuing new bonds, getting a lower interest rate and receiving loan adjustments, Supervisor Bill Stanek said Big Rapids Township will save $112,138.

During the township’s board of trustees July meeting, the board authorized the issue of bonds with 2.24 percent interest on the bonds, which have 12 years left, for the industrial park.

The old rate was 4.43 percent, Stanek said, leaving the township with a net savings of $65,489.

“It’s a big savings for the township and it’s going to help us in the long run,” he said.

The loan was given to Chemical bank, who originally held the bond.

“Our local banks were definitely the lowest,” he said. “They’re the ones that are trying and we appreciate that.”

On top of those savings, about three months ago, Stanek realized the township was being charged for loans associated with the industrial park.

He said he found there was an error in how the interest was being charged and after correcting that, the adjustment will save the township $46,649.

“We started looking into it to refinance it and there was an error on it and the bank corrected that quick,” he said. “When I found out the mistake was on there, it lowered it enough that I didn’t have to refinance it.”

The money will be saved over time a little more than 10 years.

In the future, this money could be used for sidewalks or roads, but for now he wants to make sure the township budget ends up balanced.

“Last year we were over budget, so this will help keep us in line,” he said.

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