Northampton Borough Municipal Authority (NBMA) has recouped nearly $2 million in savings.

This good news for rate payers has resulted because the authority refunded outstanding bond issues, resulting in much lower interest rates on outstanding debt.

NBMA Board Chairman Edward D. Hozza and Jerry Deily, the authority's chief operating officer, expressed satisfaction on being able to reach such a savings in a constant changing bond market.

The NBMA on Dec. 6 refunded outstanding NBMA bonds issues for the years 2003, 2004 and 2007.

Moody's Investors Service assigned a rating of Aa3 – considered very good – bringing about the refunding savings of $1,513,564.

The above savings combined with the earlier refunding done in May resulted in a total $1,948,784 in savings.

Final settlement will occur Jan. 15, 2013, Deily

The NBMA bonds have 21 years remaining.

The borough-based NBMA, with quarters on Clear Spring Drive off Lerchenmiller Drive, provides water service to 15,138 customers in Northampton and Allen Township in Northampton County and Coplay, North Whitehall Township and much of Whitehall Township in Lehigh County.

The last rate increase by NBMA for its customer base was in October 2004.