WILLIAMS, Ariz. - The city of Williams will save an estimated $372,000 after Williams City Council members voted to approve an application to refinance a bond at the Jan. 24 meeting.
The 2003 Greater Arizona Development Authority bond was used for upgrades to the water plant.
Phong Pham of RBC Capital Markets, the city's financial advisor, presented the numbers to the council.
The original amount of the bond, which was issued in October 2003, was $3,590,000.
The average interest rate on the 2003 bond was 4.837 percent. Pham estimates the interest rate after refinancing the bond would be about 3.031 percent, including costs associated with issuing the refunded bond.
"The interest rates are at all-time historic lows," Pham said.
While the city will save the most money in the first three years, it will save a total of $372,702, or 13.67 percent, by refinancing the bond.
City Manager Brandon Buchanan said the city will actually save about $330,000 with fees associated with refinancing included.
Those figures could change if interest rates change between now and when the city plans to refinance the bond in May.
Council members also voted to approve Request for Proposal documents for the city's general plan.
The city is required by law to update the plan at least every ten years. Since the city last updated the plan in 2003, it must update the plan again by the end of 2013.
The fiscal year 2013 budget allocates $20,000 for the project.
In the past, the city has contracted with outside planning firms to put together the general plan.
"It's a pretty big undertaking and we just don't have the staff in place to do it ourselves," Mayor John Moore said.
With approval from council members, city staff will begin the solicitation process for contractors.