ALBANY, GA (WALB) – The City of Albany is looking to refinance bonds in order to save hundreds of thousands of dollars.
Back in 1998, Water, Gas and Light, through the city borrowed close to $14 Million to build the water treatment facility. The interest rate on the bond is about four and a half percent.
But interest rates have dropped. They city is now looking to refinance at just over 3.5% on the remaining $8 Million left on the principal, saving hundreds of thousands of dollars.
"December was the first time we've had an opportunity to look at interest rates and see if we could save some money by refinancing these bonds and we can," said WG&L Finance Director John Vansant. "We can save between $250,000 and $400,000. So we've decided to go ahead and do it."
Refinancing the bonds will not extend the length of payments, it will only lower the amount of interest paid.