City weighs refinancing 2006 bonds

HARLINGEN — Lower interest rates could save the city “significant” amounts of money on bond payments.

In a meeting today, city commissioners will consider refinancing $3.27 million in bonds issued in 2006.

The bonds came with interest rates ranging from 4 percent to 4.25 percent.

But new interest rates under 4 percent would save “significant” money, Finance Director Elvia Treviño said yesterday.

Treviño said the city’s financial consultant will not have information on potential savings until she meets with commissioners.

Mayor Chris Boswell said officials would consider refinancing the bonds if it means substantial savings for the city.

“We’re not going to do it unless we can achieve savings that make it worthwhile,” Boswell said.

“If the interest rate is low enough to save money for the city, we’ll do it.”

In 2006, the city issued $3.27 million in general obligation bonds to fund street, drainage and sidewalk improvements, the relocation of a railroad right-of-way and fire department upgrades, city spokeswoman Melissa Landin said.

The bonds’ maturity dates range from 2018 to 2026.