SYRACUSE — City officials want to investigate a potential refinance of an existing bond on a fire station, in hopes of possibly saving up to $15,700 a year.
Stephen Marshall, city finance director, shared details of a potential bond refinance plan recently with city council members during a work session. He said there was discussion about refinancing municipal lease bonds issued in 2008 and saving as a result.
Marshall said the city could save on finance charges, even when factoring closing costs of a new bond plan for the fire station.
Estimates from Zions Bank suggest that new bonds would have an average coupon of between 3.1 and 3.5 percent, depending on where the bond was placed.
Marshall estimates the city could save approximately $206,000 overall over the life of the bond.
In 2008, the city bonded for $5.9 million over a 20-year period to pay for a new firehouse.
The current bond has a fixed rate of 4.13 percent, and the city has principal and interest payments of approximately $458,500 a year to pay for the bond, according to Marshall.
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