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.