Wayne County Treasurer Eric R. Sabree announces the successful “Refunding“ of Delinquent Tax Revolving Fund (DTRF) Notes Series 2015
Restructuring allows for early debt service retirement at lower interest rate saving taxpayers $433,000
Detroit, Michigan – February 6, 2017 — Wayne County Treasurer Eric R. Sabree is pleased to report that his office successfully closed on General Obligation Refunding Notes netting a savings to taxpayers of $433,000 in 2017.
This new series retired the remaining balance of the existing fixed rate, semi annual payment bond structure of the Delinquent Tax Revolving Fund (DTRF) Notes Series 2015 issued in June 2015. The new restructuring establishes a variable rate, monthly payment note allowing for early payoff. The new structure and interest rate is projected to save taxpayers at least $433,000 over the remaining seven month life span of the new issue.
“Anytime you can pay your debts off early to save the taxpayers money it’s a good thing to do,” said Treasurer Sabree. “While the savings may appear to be relatively small compared to the amount we borrowed, it’s real money and the early payoff amounts to real savings for taxpayers. It’s County money that we do not have to spend.”
The $187.9 million bond notes, originally issued in June of 2015 was set to mature on December 1, 2017. Based on a review of the payment schedule, success of the autumn auction and in anticipation of rising interest rates, the Treasurer’s office made a decision to initiate a “refunding” of the balance due in order to save money for the citizens of Wayne County. The restructuring of the note was completed in January of 2017.
The DTRF notes are used by the Wayne County Treasurer to advance dollars to municipalities, school districts, and other taxing authorities in Wayne County. This provides cash flows to these governmental units until such time as they realize actual tax revenues. Subsequent collections of taxes, interest and fees from taxpayers are then pledged by the county treasurer to repay the revolving fund note.
Some of the 104 entities that benefit from the Wayne County Treasurer’s program include: City of Detroit, local school districts and libraries, the Detroit Institute of Arts, Wayne County Regional Education Service, Wayne County parks, Wayne County Community College District, the Wayne County Jail and the Detroit Zoo, among others.
Information on the Wayne County Treasurer’s Office is available at the website www.treasurer.waynecounty.com. Taxpayer questions may also be emailed to taxinfo@waynecounty.com or by calling 313-224-5990.
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