Due to historically low interest rates, the NYA City Council is considering refinancing its bonds that were issued in 2005 for The Harbor.
According to the city’s financial consultants, such an action could save Norwood Young America over $50,000 per year in interest expenses.
Mark Ruff of Ehlers & Associates attended the city’s Economic Development Authority meeting last month to inform the council about the potential benefit of refinancing, and said the action seemed like “a fine idea.” He added that the city would not have to refinance if the savings don’t actually add up to that $50,000 level, and asked the council what the minimum annual savings should be to make a refinancing worthwhile.
Councilor Jim Keller said that even if the annual savings were only half of the expected $50,000 that would still be “an attractive proposition.”
Council Carol Lagergren agreed that she would like to see that type of savings kick in as soon as possible, when things are difficult economically.
The council gave preliminary approval for the refinancing, and council will be called upon for final approval around mid-November when more definite numbers are known.