42°F
weather icon Mostly Cloudy

City seeks to refinance debt

The city could save several million dollars if the City Council approves an agreement to refinance its debt.

At the Nov. 12 meeting, council members will consider and possibly vote on issuing bonds to refinance approximately $26 million in debt for the raw waterline. Refinancing the debt will reduce the repayment time by four years and save $3.5 million.

“This refinancing results in significant cost savings in the amount of roughly $3.5 million over the remaining life of the issuance to Boulder City,” said Diane Pelletier, finance director. “I’m glad that we are not only saving money for the city but also meeting one of the 2025 Strategic Plan goals, calling for sound financial practices. Once again, the team in the finance department is showing fiscal responsibility and being excellent stewards of the public’s finances.”

The city is paying 3.5 percent to 5 percent interest on the debt. If the new agreement is approved, the city will pay a fixed rate of 2.06 percent, with a loan through Chase Bank. And the loan will be paid off in 2032 rather than 2036.

Zions Public Finance is advising Boulder City and sent a request to different financial institutions. It received five submissions, and Chase had the lowest fixed interest rate.

The others were from Key Government Finance, 2.37 percent; Pinnacle Public Finance, 2.35 percent; Capital One Public Funding, 2.69 percent; and Huntington Public Capital, 2.77 percent.

In the June, Boulder City voters approved a ballot question allowing the city to refinance existing debt.

According to city code, Boulder City could not incur any new debt of $1 million or more without voter approval, and the city’s bond counsel considers refinancing existing debt as new debt.

“Previously, the city could not refinance debt without a public vote; this means that when rates were lowest, we had to wait and possibly lose our chance to lock in a better rate,” wrote Al Noyola, city manager, in an email. “I’m thankful that voters understood that streamlining the process would be more effective in capturing savings, very similar to homeowners refinancing a house.”

Zions Public Finance is a registered municipal advisory firm that provides services exclusively to Nevada issuers. It also has a banking division, which includes Nevada State Bank.

The Nov. 12 council meeting will start at 7 p.m. at City Hall, 401 California Ave.

Contact reporter Celia Shortt Goodyear at cgoodyear@bouldercityreview.com or at 702-586-9401. Follow her on Twitter @csgoodyear.

Don't miss the big stories. Like us on Facebook.
THE LATEST
Senators call for disaster funding to help Lake Mead

“Disastrous conditions have reshaped Lake Mead National Recreation Area’s one and a half million acres of incredible landscapes and slowly depleted the largest reservoir in the United States,” the senators wrote in a letter to the National Park Service.

Boulder City Council reviews city officials’ performance

Boulder City Council met in a special session Tuesday to hear presentations from the city manager, city attorney and city clerk and then to issue official performance reviews.

 
Lake Mead may face deeper pumping to protect water quality

The Southern Nevada Water Authority is evaluating whether changes need to be made to its lowest intake straw in order to protect water quality as Lake Mead continues to shrink.

Avi Kwa Ame named Nevada’s 4th national monument

President Joe Biden designated Avi Kwa Ame as Nevada’s fourth national monument Tuesday during the White House Conservation in Action Summit.

Biden set to visit Vegas to talk drug prices

President Biden will not be designating Avi Kwa Ame as a national monument next week, although he will still be in town to talk about prescription drug prices.

As Lake Mead declines, so do its visitation numbers

A National Park Service spokesman says it is not possible to say why visitors to Lake Mead National Recreation Area dropped off without further research.