WILLMAR -- Kandiyohi County will save $1 million over the next several years by refinancing two existing bonds.
The savings were much higher than expected and came on the heels of news that the county's bond rating had jumped three rungs on the ladder to a double "A".
"This is really lots of fun," said Carolyn Drude, a financial consultant with Ehlers.
The Kandiyohi County Commissioners awarded bids today to refinance a $4 million bond issued in 1998 for the Health and Human Services Building.
An interest rate of 2.13 by Robert W. Baird & Co. of Milwaukee, Wis. will save the county $940,898 over seven years.
That's more than double the savings the county expected when the idea of refinancing the bond was first explored.
The county also refinanced a $1,375,000 highway bond that will save the county $64,347 over five years.
Obviously pleased with the new bond rating and the higher-than-expected savings, County Administrator Larry Kleindl said if he'd been told a few months ago that the county could save $1 million, "I'd have told them to go fly a kite."
Drude praised the county's financial management that earned the higher bond rating and decision to refinance at this time. "This was very clever of you," she said.