To take advantage of record low interest rates, the city council may refinance some bonds (utilities, general) which could save the city up to $70,000 in interest payments per year.It was mentioned the city may want to borrow more money at the same time as well for the same reason: possibly for sewer plant upgrades, a new water tower, repairs to a building and another land purchase.
A representative from financial advisors Frazier and Lanier said "the (current) market looks good" but warned the whole thing "could blow up in our face" in 5 to 6 months. "It may not be worth doing it."
Financial Advisory Committee Chairman Zunk cited reasons for investigating refinancing:
- current low interest rates
- savings could eventually total $1 million
- good current bond market
- city's credit rating improved recently (to A1 A+)
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