SUBMITTED REPORT
 
The city of San Marcos will save more than $1.5 million in long-term interest payments after refinancing $18.78 million in outstanding debt Wednesday at lower interest rates.
 
“As part of our Sound Finances strategic initiative, we are continually looking for ways to strengthen our financial condition,” said City Manager Jim Nuse. “Refinancing this debt at lower interest rates will save us more than $1.5 million over the next seven to 12 years as the bonds are paid off.”
 
The city council approved the refinancing sale at its July 17 meeting.
 
The original debt was issued at rates ranging from 4 percent to 5 percent, finance director Steve Parker said. The refunding will yield a net present value (NPV) savings of 8.435%, surpassing a goal of achieving at least a 3 percent NPV.
 
The true interest cost of the refinancing was 2.18 percent, a historic low for San Marcos, Parker said. refinanced projects are spread between the drainage, water/wastewater and electric utilities.