The refinancing of four bonds totaling over $1.8 million was approved by the Morris City Council at their regular meeting on Tuesday. Morris City Manager Blaine Hill told the KMRS Community Connection that the City got an even better interest rate than they were expecting when one of the bidding banks proposed a counter-offer.
“The counter-offer was, if you hold to the terms of the bond we’ll give you a better interest rate,” Hill explained. “And so, US Bank made that offer and the Council accepted it and it was at 1.58 percent. It was about 1/2 percent less if we would just hand on to them for the life of them. And everybody thought that was a pretty good idea.”
By holding the bond for four years, the City will now be saving $100,000. Before the counter-offer, the City’s anticipated savings was $60,000.