City to Refinance Loans at Lower Interest Rate - Carlo De Maria

City to Refinance Loans at Lower Interest Rate

With the recent approval from the City Council, the Mayor will be moving forward on refinancing several of the City’s loans at a much lower interest rate.

During the bond analysis for this year’s Capital Improvement projects, Southwest Financial informed the administration that with its AA bond rating and positive fiscal position and stabilization, the City is eligible to refinance and thereby save a substantial amount in interest. 

“Our ability to qualify for a lower interest rate indicates how secure the City is financially,” states Mayor DeMaria, “our administration’s continued fiscal responsibility and sound investment practices are paying off.”

Currently the City’s interest rate varies between 3 and 4%.  The refinancing will reduce that rate to as low as 1.58%.  Real savings could be seen on loans such as the 2004 bond for $2.35 million that helped pay for school remodeling and the construction of the new City Services building.  If applied to this loan, the City could save as much as $100,000 over the course of ten years, without extending the length of the loan terms.

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