The City of Swisher paid off a $1.2 million sewer bond nearly nine years early, helping the city save $144,038.73 in interest and $11,301.45 in fees.
The bond, financed through the Iowa Finance Authority, was acquired for the purpose of upgrading the city’s sewer plant. The bond was set to be paid off June 1, 2030 before the city used Tax Increment Financing (TIF) funds to pay off the bond early.
Without approval to use TIF funds, the only other way for the city to pay off the bond early would be through raising sewer rates, said city clerk and finance officer Tawnia Kakacek.
“It helps the community to pay off the bond,” she added. “The city can only bond so much, so it helped us from a bonding capacity.”
The Swisher City Council voted to approve the use of TIF funds to pay off the sewer bond.
“They saved the community quite a bit of money, so that’s wonderful,” said Ms. Kakacek.