The city refinanced two loans expected to end in 2014 and 2015 but extended them to 2018, flattening debt service payments during the time period. The refinancing saves the city $4,569.
Both loans were scheduled to have increased payments by almost double what the city is currently paying because of their rate structure, said Ryan Haverlah, Copperas Cove budget director.
“(This refinancing) levels out our debt service payments. ... It doesn’t require us to make a balloon payment in 2014 or 2015,” Haverlah said.
Both loans, originally issued to the city in 2008, were roughly seven-year notes.
Haverlah said 2012 payments for those notes were about $480,000 and $345,000 and would be increasing to about $1 million and $890,000 in their final years.
According to city documents, the bonds had original interest rates of 2.78 and 3.61 percent.
After refinancing the loans last week, the interest for the remaining loaned amount — about $1.35 million — has a rate of 2 percent.
The two 2008 loans were originally for about $2.9 million and $2.1 million. They supplied funds for parks and recreation improvements, waterworks and sewer system improvements, golf course improvements, solid waste improvements and drainage projects.
Contact Mason W. Canales at email@example.com or (254) 501-7474