Silverthorne to pay rec center bonds early |

Silverthorne to pay rec center bonds early

NICOLE FORMOSAsummit daily news
Summit Daily/Brad Odekirk Krislyn and Kyleigh Dull and Christian Swindell, right, were hanging out in the mouth of a whale Thursday afternoon while at the Silverthorne Recreation Center. The town council voted Wednesday night to pay off more than $3 million in bonds that were used to build the recreation center.

SILVERTHORNE – Apparently the Silverthorne town council doesn’t like to pay bills, either.In order to get rid of a few, the council eagerly approved a resolution Wednesday night allowing the town’s finance department to begin paying off more than $3 million in bonds, eight years before the bonds were scheduled to retire in 2013.The bonds were approved by voters in 1992 and the money was used to construct the Silverthorne Recreation Center, which was completed in 1994.

“This is a moment to celebrate,” said Mayor Lou DelPiccolo. The council unanimously voted to allow finance director Donna Braun to give the bond’s trustee the required 30 day notice that the town would be paying the bonds in full. The original amount on the bonds was nearly $5.7 million and they become eligible for payoff on April 15. The bonds are scheduled to retire in April of 2013.This decision will save the town $904,790 in future interest payments.

“It says a lot about how we manage our money here,” Braun said.The town recently completed a financial analysis and determined it would be in the town’s best interest to pay off the bonds early. Braun credits conservative budgeting and the economy for enabling the town to save money over the past few years.

“We don’t use available funds over and above what we bring in during a given year unless it’s capital related,” she said. It will cost the town $3.72 million to pay the bonds early, with $2.2 million coming from the general fund. The remainder will come from the sales tax capital improvement project fund, which is required to hold a bond reserve equal to the highest annual bond payment, approximately $500,000 per year until 2013.Because the town will be paying the bonds early, those reserves are no longer needed and can be put toward paying off the debt.

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