COPPERAS COVE — The City Council awarded the issuance of two city bonds worth about $7.3 million to BOSC Inc. at various interest rates for different terms.
“I can’t believe you can borrow money that cheap,” said Mayor John Hull, noting one of the interest rates for the bond was the lowest he has seen.
BOSC Inc, based in Tulsa, Okla., was the lowest of nine bidders for the $2.6 million, seven-year loan the city sought for the purchase of equipment for multiple departments to include new police vehicles, library renovations and street construction equipment.
The loan’s interest rate was awarded at about 1 percent, which means the city will pay about $119,000 during the seven-year period.
“To get money at 1 percent at a fixed rate is incredible,” said Garry Kimball, with Austin-based Specialized Public Finance, the city’s financial adviser.
The second bond is a nearly $4.7 million 20-year loan, which will pay for relocating the city’s second fire station and purchase of two new fire trucks, including a new ladder truck.
BOSC Inc. will give the city the money for a 2.22 percent interest rate, which will cost the city about $1.8 million over the length of the bond’s 20-year term.
Both loans were awarded at interest rates under those projected by the city, which Kimble said meant a savings of about $580,000 on the $4.8 million loan alone.
The city had estimated that both loans would have interest rates of more than 3 percent.