The Electric Utility of Manitowoc Public Utilities will be completely “debt free” after
The City’s Finance Committee approved a request this week to pay off nearly $4.66 million In old debt. Mayor Justin Nickels said, “Through hard work and working the budget numbers they are about to pay (it) off early which will completely eliminate the debt.”
In the financial world some say it’s favorable to have some so-called “good debt” on the books to show a long consistent record of paying down obligations. Nickels said “We’ll have to go in debt at some point for a major upgrade to the plant but, we won’t have to necessary do it to the degree that maybe needed because we are saving up dollars for it because we are not paying down debt, and Bond Agencies look favorably on that too.”
Additional benefits include a rate decrease later this year and ratepayers will save approximately $665 thousand in interest that would have accrued during the life of that borrowing. The last time MPU was completely debt free was 1947 which Nickels says is “very uncommon”.
