Like a homeowner who can reduce payments by locking into a lower interest rate and better terms, government can save substantial dollars by refinancing existing debt. Advance refunding bonds are issued to pay off outstanding bonds that are not yet due to be retired. To be eligible, bond series must be at least one year from becoming callable.
An advance refunding is a procedure by which bonds are refunded early. Typically, this involves the sale of an issue several years prior to the first call date of the issue. The Office of the Treasurer is responsible for assessing the merit of proposed advance refunding issues and authorizing those having a significant beneficial impact.
Advance refundings usually are executed to realize debt service savings when new bonds are sold at rates significantly below those of the original issue.
Advance Refunding Plans and other materials should be submitted to email@example.com.