From the Johnson County Daily Journal:
Greenwood thought that refinancing millions of dollars of debt would be a big savings, but it wasn’t as much as hoped.
Mayor Mark Myers wanted to take advantage of low interest rates and refinance millions of dollars of debt that the city has accrued as a result of various projects, including building the community center and buying land for Freedom Park.
Turns out, Greenwood can save about $100,000 in interest over seven years on a 2008 road project. The city is refinancing that loan at a lower interest rate without extending the term over which it has to be paid back.
Myers hoped to reduce spending on interest at a time when the city isn’t bringing in enough tax dollars to cover expenses. But Myers found that Greenwood will save less than initially hoped for, since most of the loans can’t be refinanced yet or are so close to being paid off that the fees would be greater than any savings.
More than $1 million of the city’s budget goes to debt payments every year. Greenwood is still paying off debt on the community center, fire trucks, land for Freedom Park, and on road work in neighborhoods such as Northern Park and Whispering Trails.
http://www.dailyjournal.net/view/local_story/Savings-don-t-add-up-to-much_1341803180/
