Salisbury City Council has learned that the city save $1.9 million by refinancing some of the debt it took on to build Fibrant, Salisbury’s high-speed broadband utility. City Council will hold a special meeting at 10:30 a.m. Thursday in City Hall to consider the move.
They will look at refinancing one series of the Certificates of Participation the city issued in 2008 to build the $33 million fiber-to-the-home network. Refinancing series B would save $1,985,420.
The city’s current interest rate is 5.11 percent but since 2008, interest rates have fallen substantially. STI Institutional & Government Inc. has offered to refinance the outstanding debt at 2.24 percent.
The city issued a total of $35.86 million in bonds in 2008, including $33.56 million for Fibrant and $2.3 million for the general fund.