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IFA Saves Town Money
(posted December 22)
The cost of the $6.7 million State Revolving Loan will cost taxpayers less
than a million dollars in interest to finance Main Street and Gerrard -Allison
Sewer Projects.
Emma Kottlowski of the Indiana Finance Authority explained by borrowing
with a state revolving loan it saved taxpayers about millions of dollars
compared to seeking a loan through the open market.
“The loan that Speedway closed on December 3 included the following:
$1,437,000 Forgivable Loan at 0% (Grant)
$5,398,000 SRF Traditional Loan at 3.06%”
“The estimated principal and interest on the SRF Traditional Loan is
$7,296,922. If Speedway would have closed an Open Market financing at an
estimated 5.5% the principal and interest would have been an estimated
$11,438,964. By closing with SRF instead of Open Market, Speedway has
saved an estimated $4,142,042.”
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