FORNEY, Texas — The City of Forney will save just over $1 million in future debt service payments with acceptance of an ordinance to allow for the refinancing of over $7 million in bonds.

During a review, the city's financial advisors, Hilltop Securities, identified and recommended the refinancing a portion of the 2011 Certificates of Obligation and General Obligation Refunding issuance. During their review, Hilltop Securities estimated a rate reduction of 4.1% to 2.34%, or a savings of approximately $595,000, according to City of Forney's Finance Director Deborah Woodham.

During last night's city council meeting, in seeking approval from the city council on an ordinance to sell the refinanced bonds, Woodham said Hilltop Securities was actually able to get the interest rate to 1.3%, which would nearly double the savings to $1,043,000. The motion was unanimously approved by the council.

At the beginning of last night's city council meeting, the City of Forney Finance Department was presented the Distinguished Budget Presentation Award from the Government Finance Officers Association. This is the 12th year the city's Finance Department has been presented the award.

According to the latest debt service data from the City of Forney, the city currently has $69,494,466 in debt service obligations through 2036.

"Of the total debt, $64,181,000 is tax supported and accounted for in the General Debt Service Fund and $4,480,000 is utility revenue supported and accounted for in the Utility Debt Service Fund," according to the City of Forney.

Since the City of Forney began refunding, or restructuring existing debt, in Fiscal Year 2011, the city has recognized interest savings of $5,245,487. Additionally, since 2013, the City of Forney has paid off a portion of some of its principal bond debt early to reduce interests cost to the tune of $7,660,350 in interest savings. Combined, interest savings from refunding and early redemption over the past 10 years have totaled approximately $12.9 million.