Mayor David: New plan will save taxpayers $1M

By Anna Norris

Mayor David: New plan will save taxpayers $1M

August 6, 2014 Updated Aug 6, 2014 at 1:44 PM EDT

Binghamton, NY (WBNG Binghamton) Binghamton Mayor Rich David announced two separate money management plans that will save taxpayers $1 million and also add to the city's revenue.

According to the mayor's office, the first involves refinancing the city's 2007 public improvement serial bond at a lower interest rate.

The $23.5 million bond originally had a 4.29 percent interest rate. The city is refinancing the $18.8 million it still owes at a 2.85 percent interest rate, which will save $1 million in interest payments over the next 15 years, according to David.

The second initiative involves moving cash funds to a local bank account with a higher interest yield.

The city will move $5 million in cash deposits to Chemung Canal Trust Company, which will result in about $65,000 more in annual interest revenue.

David said these initiatives are just another step to improve the city's finances.