weather icon Clear

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.
City clerk fired

A somber mood was at City Hall Tuesday evening as City Council fired longtime City Clerk Lorene Krumm despite many people calling in to support her and express their disagreement with the action.

Two ballot questions about pool OK’d

Boulder City residents will have the opportunity to weigh in on a new community pool as City Council approved two ballot questions for the 2021 municipal election in June.

Business Beat: Hobby revamped as line of hot sauces sizzles

It’s getting hotter in Boulder City because a local business owner has turned his hobby into a line of popular hot sauces.

COVID restrictions eased

Statewide restrictions were eased earlier this week by Nevada Gov. Steve Sisolak allowing residents to attend city meetings in person as well as visit a restaurant without reservations and with a larger group or participate in small gatherings.

Budget sees $2.4 million boost

The proposed city budget for fiscal year 2022 is approximately $2.4 million more than last year’s because revenues are expected to be almost as high as before the pandemic. The 2021 budget was reduced by several million dollars due to projected revenue losses as a result of COVID-19.

Bail set for driver who killed cyclists

A judge set bail at $750,000 for a box truck driver accused of killing five Las Vegas bicyclists, court records show.

Fired city employees file appeal

Two former employees are appealing the dismissal of their complaint accusing the city and council members of violating the open meeting law and breaching a covenant of good faith and fair dealing when they were fired.

City’s origins celebrated

Ninety years ago this month, Boulder City was officially placed on the map.