St. Francis to save $173,000 with bond refund

The St. Francis City Council Feb. 19 took advantage of record low interest rates by refunding $2.75 million in general obligation bonds for a net savings to the city of almost $173,000.

The action, advised by George Eilertson of Northland Securities, replaces the city’s original bond interest rate of 4.33 percent with an interest rate of 1.91 percent.

State law requires a net present value savings percentage of at least 3 percent for a city to sell bonds to refund outstanding bonds. In this case, the present value savings is about 5.44 percent, Eilertson told the council.