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The original item was published from 12/19/2016 4:53:01 PM to 12/31/2016 12:00:04 AM.

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City of Allen Headline News

Posted on: December 19, 2016

[ARCHIVED] Allen EDC Saves $1.1 Million by Refunding Bonds


The Allen Economic Development Corporation (AEDC) is taking advantage of lower interest rates to make the most of taxpayer’s money.

Council members approved a plan to refund $11.96 million in existing bonds, which carried a 3.5% to 4.5% interest rate. The new interest rates will range from 1.06% to 2.99%. The payoff date was reduced from 2032 to 2027.

Bonds are a common financing tool used by cities to fund large-scale projects over several years. Similar to refinancing a home, the refunding process helps cities capitalize on more competitive interest rates based on market conditions.

The Allen Economic Development Corporation is funded by a half-cent sales tax on all retail purchases made in Allen. Through this refunding process, AEDC will save $1,108,692.

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