South Weber considers plan to refinance

Jan 13 2012 - 12:28am

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SOUTH WEBER -- John Ward, a public finance director for Zions Bank, presented a plan for the city to refinance its 2004 sales tax revenue bond.

By lowering the interest rate to below 3 percent, the refinancing would save the city $44,000.

Ward showed the council members a pamphlet that addresses financial debt and economic development.

The bond buyer index showed that the interest rates had hit "rock bottom at phenomenally low interest rates."

Ward investigated four different financing strategies and recommended SunTrust Community Capital, which at an interest rate of 2.97 percent could result in an average of $2,000 in annual savings.

Ward told the council, "Why pay more and jeopardize your future?"

The first step would be the notification of bonds to be issued and published on Jan. 17, then Ward said he would return to the council Jan. 24 to adopt an authorizing resolution.

Councilman Farrell Poll asked if the interest rate could change. Ward said it was possible, but if there were a problem, they would "go back to the drawing board."

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