Monmouth College will save significant interest payments by taking advantage of low interest rates. It will refinance a bond issue. The college used a portion of the city's bonding authority to pay for construction of Bowers Residence Hall
The $6 million building was completed in 2001.
City Administrator Eric Hanson says the city had to approve the change before the bond counsel could move forward.
He says, “It dramatically reduces their interest rate over several years ago. But it doesn't really have any ramifications for the city.”
Hanson says the college will save about $60,000 a year for the next ten years.
College spokesman Jeff Rankin says the refinancing will drop the interest rate on the bonds from 5.6% to 2.45%.