OGDEN -- The city hopes refinancing a series of sewer bonds taken out four years ago will save it some cash.
Salt Lake City consulting firm Lewis, Young, Robertson & Burningham -- the same firm that helped draft the city's current water rate structure -- has recommended that the city take advantage of historically low interest rates and refinance the 2008 series storm sewer bond to save about $193,000 over the life of the bonds.
The current rate on the bonds is 4.88 percent. LYRB estimates the city can lower the rate to 2.35 percent, with closing costs for the transaction estimated to be $39,000.
In August 2008, the city issued $2.4 million in storm sewer bonds to finance improvements to its storm sewer infrastructure.
The bonds were issued with a maturity rate of June 2023.
The city still owes $1.9 million on the current bonds.
A bond parameters resolution will be set for the 2012 bonds. Under the parameters, the bond issue will not exceed $2.2 million, a 3.5 percent interest rate and will be paid for by June 2014.
Tony Reynolds, director of the city's management services, said if the market dries up on the bonds before pricing, making the refinancing uneconomical, the city would not be bound to enter into the refinancing.
The city council will vote on the matter at one of its regular council meetings later this month.