The state Department of Transportation refunded nearly $106 million of the transportation revenue bonds it issued in 2004 to accelerate projects across the state.
The money was available when CDOT refinanced the bonds, which have an average interest rate of 1.42 percent. The interest on the original bonds ranged from 3.6 percent to 3.7 percent when originally issued.
The refund will save the state about $3.29 million during the remaining life of the bonds, while maintaining the same payoff date for the entire bond program in 2017. Most of the savings come from lower debt service payments.
“At a time when funding for transportation is scarce, taking advantage of market conditions is the responsible thing to do,” said CDOT executive director Don Hunt. “This refunding allows us to take advantage of low interest rates, providing a significant savings, which in turn will make more dollars available to invest in our transportation system.”