Brighton Explores Utility Revenue Bond Refinancing

City of Brighton residents could soon see a reduction every other month in their sewer and water utility bills.

During their meeting Feb. 16, City Council members voted 6-0 to approve an ordinance to start the process for possibly refinancing the city's 2001 utility revenue bond issue. Mayor Pro Tem Chad Cooper was not at the meeting.

Brighton Finance Director Kelly Hanna said she could not give exact cost savings, as interest rates are constantly changing, but she said preliminary information shows that the total debt savings could be up to $500,000 — a 5 percent reduction in the debt service charge on utility bills.

Brighton water and sewer utility customers' rates include a fixed amount that is for debt service on past bonds issued, City Manager Dana Foster said.

Current debt service rates are $43.58 every other month.

"It is our hope that we'll be seeing some kind of reduction from that amount," Foster said.

Bendzinksi & Co. Municipal Finance Advisers told City Council members that the cost to refinance the bond would be incurred only if the city of Brighton goes forward with the refinancing — which will only happen if the savings are still there.

Hanna said the $500,000 estimated savings was after the costs of refinancing.

The ordinance approved Feb. 16 gives authority to Foster, Hanna and City Clerk Diana Lowe to complete the bond refinancing without having to go back to the City Council.

Hanna said that if the process for refinancing moves forward, she will give a full report in May to present ultimate savings.