Tuesday, September 13, 2011
DALLAS -- The Dallas City Council voted Tuesday, Sept. 6, to begin the process of refinancing two loans it took out for improvements to its wastewater treatment facilities.
The city estimates the move could save about $300,000 over the remaining life of the loans.
In 1996, the city secured a loan of $14.5 million to pay for a new treatment plant. The city still owes about $7.6 million and is due to pay off the loan in 2020. Two years later, the city took out a smaller loan of $523,000, scheduled to be paid off in 2017.
Refinancing would combine the two loans under one interest rate, but the payoff dates for both loans would remain the same.
The loans could be refinanced at an interest rate around 2.9 percent. That compares to the 1996 loan at a current rate of 3.9 percent and the 1998 loan at 4.7 percent.
The city plans to use a competitive bid process to sell the loans as municipal bonds this month, with an expected closure date in early October.
In other council business, the city awarded the contract for improvements in Kingsborough Park to J.P. Contractors Inc. of Portland in the amount of $129,500.
The work will include building a new soccer field, basketball court, fitness area, detention basin and better access for people with disabilities. All the work except the detention basin will be paid for with an Oregon Parks and Recreation Department grant. Funding for the basin, which will help control flooding in the park and become part of the city's storm water system, will come out of the city's sewer budget.
The project is slated for completion at the end of October.