(Spirit Lake)– The city of Spirit Lake is taking advantage of some historically low interest rates by refinancing some outstanding bonds.
The city council Tuesday adopted a series of resolutions to refinance approximately $7.2 million in outstanding bonds. Tim Oswald of Piper Sandler Companies, the city’s bonding consultant, told the council it will result in a considerable savings on interest fees…
“The headline here is that after transactional fees, the city, through the re-financing, is going to save $427,000, and that’s spread over the next eight years. You’re borrowing money from, through this issue, at an interest rate of, hope you’re sitting down, 0.5 and that includes fees.”
City Attorney/Administrator Gregg Owens says the savings will give the city some exciting opportunities for the future…
“This opens up a lot of options in addition to some other things that we’re working on that the council is going to be able to address here in the next few months as far as future planning for this city. Financially we’re in the best shape we’ve ever been in.”
City officials say the savings through the re-financing are considerably higher than originally anticipated.
