Archbold, OH
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Council Refinances Bonds, Saves $30,000 Per Year

Archbold Village Council dealt with several financial matters at its Monday, April 4 meeting, including a plan that could save $30,000 a year.

Council approved the refinancing of $3.25 million in bonds that were originally issued in 2010.

Dennis Howell, village administrator, said the original bond issue was for $3.7 million.

The money was used to construct Woodland Park and pay for renovations at the wastewater treatment plant.

The old bonds would be recalled, or paid off early. New bonds would be sold offering investors a lower interest rate.

Over the life of the bonds, Howell anticipated the village could save about $30,000 a year in interest expenses.

In another financial move, council approved the sale of $1 million in one-year notes to the Farmers & Merchants State Bank.

The village will repay the $1 million to the bank in one year, along with 0.85% interest.

Howell said Huntington Bank, with a branch in Archbold, offered to buy the bonds, but wanted a 1.75% interest rate.

Council also approved transferring $1 million from the income tax fund to the general fund.

Howell said the transfer was made to build a reserve in the general fund.

Village officials aim to keep six months of operating revenue in reserve. Howell noted it will be about six months before the village receives its next share of property tax revenue from the county auditor office.

Years ago, the income tax was strictly limited to capital projects– specifically, street repairs.

Howell said now, only .25% of the 1.5% income tax is restricted. The remainder is not.

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