PLEASANT VIEW -- With the refinance of a water bond, the city will save $64,971 in taxpayer dollars, City Administrator Melinda Brimhall said.
Brimhall praised the work of Alan Westenskow of Zions Bank, who worked with the city to come up with the reduced rate.
"When he talked to us (about the refinance) back in April, it looked very promising," Brimhall said.
She said the city has now closed on the refinance, and the interest rate on the bond was lowered from 2.79 percent to 1.74 percent. Brimhall said it makes sense to refinance anything that can be lowered by 3 percent.
"It is $64,971 that we have saved taxpayers of Pleasant View," said Brimhall, who said the interest rate is also fixed.
The previous rate was variable, she said.
Along with the obvious savings, the bond also freed up cash flow, because of the timing of the agreement.
"We had $121,000 just sitting there that we couldn't use," Brimhall said. "What we did is we took that and threw that into the money we could use to refinance, because now they are not requiring that payment."
Brimhall said the time frame to repay the bond was lowered from 12 years to 10 years.
"Our payments remain about the same amount -- we just pay it off two years quicker," Brimhall said.
She said Westenskow worked hard in Pleasant View's behalf to contact banks with good rates.
The last payment on the bond will be due in April 2023 rather than 2025.