Council okays bond re-financing

The Council action came during their Monday night meeting.

City Finance Director Steve Hoglund told the Council that current bond lending rates are much better than they were in 1999 and better than earlier this year with the Council approved similar action.

In February of this year, the city authorized re-funding, but by the time the city was ready to coordinate the bond issue, the rates had risen. Now, the rates have again fallen and Hoglund estimates the city could save as much as $115,000 at the lower rates.

In 1999, the city paid bond rates from 4.65% to 5.1%. Now, he expects rates of 3% for the first 5 years and 4% for the last 5 years of a 10-year bond issue.