Toccoa City Commissioners are considering re-financing the city’s debt with the Georgia Environmental Finance Authority to save money.
During a Monday work session, Brian Ubell from Robert W. Baird and Company of Atlanta appeared before city commissioners to talk about the possibility of re-financing the city’s GEFA debt.
As of January 1, the city has about $6.15 million in GEFA debt outstanding. $5.57 million of that debt, which is for work at Eastanollee Creek Wastewater Treatment Plant, is at a 3.75 percent interest rate. $238,000 of the debt is at a 5.21 percent interest rate and the other $345,000 is at a 4.76 percent interest rate.
Ubell told commissioners that Baird believes the city could re-finance the total debt, while not extending the term, at 2.25 percent, potentially saving the city about $279,000 over the life of the loan.
He also said that the city could get an even better rate than that once it goes out to banks for bids.
“I think that (2.25) percent may be a bit higher than we expect once we get banks bidding on it,” said Ubell.
City commissioners asked Ubell if he had information about what sort of savings the city would see if the loan were re-financed to shorten the term, rather than lessen the payment.
Noting that the savings would be on the back end, Ubell said he could get that information to the commission.
The commission agreed to look at that information and discuss the matter at a future date.