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Durango considers library bond refinancing

Action could save $70,000 a year
Refinancing of bonds used for the Durango Public Library on East Third Avenue could save the city $70,000 a year.

Durango City Council is scheduled to vote in March to refinance bonds for the Durango Public Library, which could mean more than $70,000 in annual savings for the city.

The city currently makes annual payments of about $1.2 million at a 4 to 4.125 percent interest rate. The $15.9 million bond was issued in 2007 to partially finance the library on East Third Avenue.

Jim Manire, senior vice president of First Southwest Bank and financial advisor to the city, said refinancing with First Southwest Bank would mean a reduced interest rate of 2.3 percent and total savings of approximately $685,000 by the time the bond reaches maturity in 2025.

“It’s like refinancing a mortgage,” Councilor Keith Brant said. “If you can save hundreds of thousands, it’s a no-brainer.”

The bond’s outstanding amount is about $10.2 million, and $9.3 million of that is eligible for prepayment starting Dec. 1, 2016.

If the refunding proposal receives council approval, closing would take place in early May.

jpace@durangoherald.com



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