Bond Refinancing Yields Almost $2 Million in Savings for Henderson Homeowners
September 11, 2017
FOR IMMEDIATE NEWS RELEASE
PLEASE CONTACT KATHLEEN RICHARDS, (702) 267-2051
Henderson, Nev. – Homeowners in two Henderson neighborhoods will see a savings of nearly $2 million following a recent bond sale by the City of Henderson that was used to refinance two local improvement districts.
The local improvement districts were established in the Anthem and Madeira Canyon communities in 2003 and 2005 respectively, and were used by developers to fund construction of streets, streetlights and water infrastructure within those neighborhoods. Homeowners repay the cost of the infrastructure over time through a monthly property assessment based on each home’s value.
By refinancing these two local improvement districts at a lower interest rate, 3,293 Anthem home assessments will be reduced by about $350 and 1,369 Madeira Canyon home assessments will be lowered by about $1,300 by the time the bonds for each project mature. The total savings for all homeowners will equal $1.978 million in today’s dollars, with $990,017 of the reduction being seen by Anthem residents and $988,053 in savings being seen by Madeira Canyon residents.
“Homeowners in Anthem and Madeira Canyon will see nearly $2 million in savings through our ability to refinance this debt and that is money that goes right back into their pockets,” said Chief Financial Officer Richard Derrick. “The improvement district’s strong bond rating allows us to secure lower interest rates when financing capital improvement projects that directly benefit property owners in these areas by reducing overall costs for these important investments in our community.”
Favorable market conditions prompted the City of Henderson Finance Department to consider refinancing the debt through bond sales at a lower interest rate. Refinancing lowered the interest rate from about 5 percent to about 2.2 percent.
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