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By JoEllen Black/Richmond News
Richmond City Council secured new refinancing of its municipal complex Feb. 27 at a council meeting that was moved back a day due to Tuesday’s snow storm.
The council unanimously approved an ordinance allowing the city to change its financing of the complex, now at $4.48 million. The move takes effect March 27.
The city received a favorable fixed interest rate of 3.9 percent through the duration of a 30-year loan – a quarter percent less than what was anticipated by Jack Dillingham of Piper Jaffray Feb. 13. Financing now is through a Bank Midwest loan of 4.25 percent, but interest rates could increase in 2015 if the loan is extended by the city.
Dillingham anticipates the city will save an average of $24,729 each year until 2038. However, from 2039 to 2043, there would be no cost savings because the loan has been extended five years beyond the current loan. Dillingham predicts the city will save a little more than $50,0000 on the current loan if it remained at 4.25 percent.