LUFKIN, TX (KTRE) - Back in 2003, the City of Lufkin borrowed $8.2 million for several street projects. According to City Manager Paul Parker, for the last 10 years, the City of Lufkin has been paying approximately 5 percent in interest rates on the sum borrowed.
In November, they will be able to purchase those bonds back and refinance the remaining sum, which is now $5.3 million. Parker said by refinancing the sum now, it will be saving tax payer money.
"We think we can save 4 percent overall on the funds," Parker said.
They are hoping to save approximately $200,000, but if they are unable to get a lower interest rate, they will not buy back the bonds.
In addition to the tax bond, Parker said the city sold a water, sewer, and revenue bond back in 2003, which is now callable.
"The covenance of that bond sale required the city to put up in the reserve about $2.3 million," Parker said.
The city now owes a little over a million on that bond. They now plan to pay off that bond and return the remainder of the money which is $1.3 million into the sewer operation fund.