Gainesville City Council on Thursday approved the refinancing of the city's water and sewer revenue bonds, which officials said would save the city approximately $3 million.
Wells Fargo became the winning bidder on the $31.2-million long-term debt service, a number the company reduced to $28.1-million, according to city documents presented at the council's special called meeting.
Wells Fargo offered an interest rate of 1.27 percent, which was lower than expected by about 0.23 percent.
"(Bids were sent) to about 23 banks, some real local banks and some national banks, and we got six bids back," said Kathy Posey, Senior Managing Consultant with Public Financial Management.
The city refinanced the bonds back in 2014, which were originally issued in 2005.
"Going forward, from 2017 to 2021, (the city) will have debt service savings of $495-thousand per year," said Posey.
Council unanimously approved the refinancing.
"We've saved 12-, 13-million dollars with refinancing these bonds (overall)," said Mayor Danny Dunagan.
Closing on the agreement is set for Sept. 27.
