The Palestine City Council unanimously approved a refinance measure on bonds used to purchase the Palestine Mall that will save the city over $600,000 in interest during its regular meeting on Monday.
In a presentation by City Financial Director Elizabeth Saegert, the move was proposed due to favorable economic conditions that would allow the city to receive lower interest rates.
“Staff negotiated with Prosperity Bank to modify the interest rates on bond issues used to purchase the Palestine Mall in 2010,” Saegert said. “We were able to modify interest rates to 4.5 percent.”
That new rate will save the city approximately $682,700 in interest over the life of the bonds, or $37,900 per year.
“That savings will increase our balance about 30 percent a year,” Saegert said.
Council members were pleased with the move and voiced thanks to Saegert and Brenda Beazley of Prosperity Bank for the effort in making the savings possible.
Also on Monday, the council:
• HEARD the city manager’s report.
• OPENED bids for Phase IIB Sanitary Sewer rehabilitation.
• APPROVED the consent agenda.
• APPROVED the 1-year extension of a lease agreement for the Veterans Administration at the Palestine Mall.
• APPROVED a bid of $19,983 from Triple D Pump Company of Waco for the purchase of a new Lift Station on North Jackson Street.
• APPROVED an ordinance for amendments to Chapter 40 Development, Article X of the Code of Ordinances entitled Signs.
• APPROVED an ordinance of an amendment to Chapter 40 Development, Article II Platting and Subdivision of Land, Section 40-53, Types of Plats, (2) Development Plats, regarding when a development plat is required.
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