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City will Save $800,000 by Refinancing Library Bonds

Lower interest rates will spell the difference

City will Save $800,000 by Refinancing Library Bonds

Strongsville officials, who recently in interest, are doing the same thing with library bonds to save about half that amount.

City Council voted last week to issue a $2.6 million note on the remaining library debt.

The city will get a .5 percent interest rate -- and with it the ability to pay off the debt five years early, saving an estimated $800,000.

Mayor Tom Perciak said he was leery about switching long-term debt for short-term, but said indicators show it's the wisest move.

""When you see where the market is going . . . we have some comfort in knowing the rates are going to stay low," Perciak said.

The city could refinance with long-term bonds, but the rate is now about 2 percent.

Instead, the city will roll over one-year notes until 2016.

Voters in 2000 approved about $7.2 million worth of bonds to build and equip the The city has been paying on the 20-year bonds for 10 years.

Earlier this month, the city refinanced its debt on the , trading in a 5 percent interest rate for 2.07 and saving $1.6 million over the next 10 years.

 

 

 

 

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