A bid to refinance some of the city’s old, outstanding bonds in order to save money on their interest payments got the unanimous support of the common council Monday night.
Mayoral chief of staff Melissa Murphy explained that the city’s financial advisors have strongly recommended the proposed plan of action.
The refinancing of just one particular loan, said Murphy, would alone result in a net savings of $100,000 over the next decade.
The administration presented the council with a draft of a legislative order that, if passed by the council and aldermen, would authorize the mayor and city treasurer to refinance current bonds owed by the city if they can obtain lower interest rates.
The action is similar to homeowners who refinance their mortgages to save money when interest rates go down.
Without much further discussion, the council voted 14-0 in favor of the refinancing authorization.
The proposal now goes to the board of aldermen for its needed approval. The board is expected to take up the matter at its next meeting on Tuesday night (Monday is a legal holiday).