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Martinsville treasurer reports record interest and outlines bond payoff options
Summary
Treasurer Mister Meredith reported $586,247.50 in year-to-date interest as of Oct. 31, said the council's approved budget was accepted by DLGF, and identified three bonds the city is exploring paying off early with modest savings.
At the Nov. 10 Martinsville Common Council meeting, Mister Meredith reported the city had earned $586,247.50 in interest year to date as of Oct. 31, surpassing last year's $572,000, and updated the council on the status of the approved budget and potential early payoffs of several bonds.
Mister Meredith said the council's approved budget for 2026 had been submitted to Gateway and accepted by the Department of Local Government Finance (DLGF). He told members the city is "working on paying off a couple of bonds," identifying the general obligation bond 2024, the redevelopment commission (RDC) bond 2022 and a park bond from 2018 as candidates for early payoff, and noted some payoffs would require council action at a future meeting.
When asked for payoff figures, Mister Meredith provided approximate amounts: "GO bond 2024, that payoff is gonna be 342,000," "RDC 2022, that payoff is going to be 463,000," and the park bond is about "152,000." He added that early payoffs in these cases produce modest savings ("RDC 20 '22, we're saving about $10,000 by paying it off early" and the park bond would save about $7,000), and that the savings are not large because the bonds are near scheduled drop-off dates.
Meredith also said the city has considered Bank of New York on potentially paying off the fire lease early but was told the agreement prohibits early payoff before maturity (maturity date cited as 02/01/2028). He said the city aims to apply a debt-reduction strategy to remove several obligations from the books over time.
Members asked follow-up questions about payoff totals and whether Meredith was reporting payoff or original amounts; Meredith said he would provide the requested payoff figures to the council.
The council did not take formal action on the bond payoffs at the meeting; Meredith indicated further council consideration will be needed for any early-payoff decisions.
