Amador County – The Jackson City Council on Monday unanimously approved to refinance city water bonds in order to achieve additional savings in overall debt service. A memorandum from the City’s Bond Counsel stated that “with respect to market conditions…such a refinancing would produce an aggregate savings to the City of approximately $320,000.” City Manager Mike Daly said savings could be as much as $350,000. “That is the range we’re trying to achieve, but that is all dependent on interest rates,” he said. In 1992, the City entered into two sales agreements with the City of Jackson Public Financing Authority totaling $4,840,000 in order to finance various improvements on facilities and property it owns and operates, including a municipal water system. The city refunded those agreements through the issuance of bonds in 1998. The resolution before the council said “the City has determined it is in the interests of the City to provide for the issuance of its 2010 Water Revenue Refunding Bonds…to refund its obligations” from 1998. According to state law, the City is authorized to issue its bonds for the purpose of refunding any outstanding indebtedness payable from the revenues of these properties. The Council authorized the issuance of the bonds in an aggregate principal amount not to exceed $3,000,000, provided that the payments of principal and interest will “produce a net present value savings, as compared to the 1998 bonds.” Authorization was granted to Stinson Securities, LLC of San Francisco, to carry out the process. Daly said most of this will happen in the next three weeks. He said this could equal up to $40,000 a year in savings for the first four years after it is implemented and “could lessen the need to increase water rates.” An update on the result of these savings will take place at an upcoming council meeting, to be announced. Story by Alex Lane This email address is being protected from spambots. You need JavaScript enabled to view it.