Re-Funding to Save Hermiston Taxpayers $440,000

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Just as homeowners take advantage of lower interest rates by refinancing their homes, the city of Hermiston is looking to do the same by re-funding one of its long-term debt obligations.

The Hermiston City Council passed a resolution at its Monday meeting to authorize the re-funding of general obligation bonds originally issued in 2003 for the construction of the Hermiston Family Aquatic Center. At the time the bonds were first issued for the amount of $3,635,000, interest rates were at 4.6 percent.

With current interest rates under 3 percent, the re-funding is estimated to save the city taxpayers $440,000.

Jane Towery is the managing director of Piper Jaffray and is working with the city on the re-funding process. She advised the council to move forward with re-funding to take advantage of the current low interest rates.

“Rates are starting to go back up so now is the time to restructure the bond,” she said.

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