Dixon to save $3.8M in repayment
DIXON – Dixon will save nearly $4 million after Midland States Bank agreed to let the city pay back bonds early, Finance Director Paula Meyer said today.
The three bonds were issued in 2008, 2010 and 2011, and couldn't be paid off any sooner than 2018, 2020 and 2021, respectively, Meyer said. But after a meeting a few weeks ago between the bank, Meyer and Commissioner Dave Blackburn, the bank agreed to let the city pay them off now, saving a total of $3,868,610.
The bank had no obligation to agree to the early payment, but the city approached the bank because the taxpayers deserved for the city to try, Meyer said.
The city will have the money to pay off the bonds, Meyer said, from returns received from a lawsuit settlement in the matter of former Comptroller Rita Crundwell.
The balance on the bonds at the end of October was $12,316,000, Meyer said, adding that the total repayment amount would have been $16,184,610.