With a single vote last week, the Oxford Township Board saved sewer customers more than $150,000 by avoiding the bonding process.
Officials voted 7-0 to prepay the township’s portion of two bonds meant to fund improvements to the Oakland-Macomb Interceptor (OMI) rather than pay debt principal and interest over the next 20 years.
Oxford’s sewage flows through the OMI Drain on its way to Detroit for treatment.
The township’s portion of the two OMI projects, which total $20 million, amounts to $483,680.
By paying the total amount up-front, the township avoids paying bond debt interest amounting to $156,272 between October 2015 and April 2035.
The township is able to do this because its sewer fund has a very healthy fund balance. Based on the 2013 audit, the sewer fund’s unrestricted fund balance was $3.4 million. The unaudited fund balance for 2014 shows an additional $160,462 in revenues over expenses.