The Rolling Meadows City Council wants to bank on current low interest rates by refinancing bonds and perhaps by borrowing more money for capital improvements.
If aldermen approve refinancing its debt next month, the city could save about $20,000 a year on $2.5 million in bonds, or a total of $306,000 over the life of the bonds.
Because current interest rates are the lowest in 20 years, the council also will consider borrowing an additional $5.1 million for capital improvements.
If the new bond deal is approved, $2 million would be spent on street repairs, $2.7 million on a proposed $6.6 million public works building and the rest on other capital improvements.
Without increased costs to taxpayers, the bonds could be repaid annually by transferring $500,000 from the city`s yearly $1 million street improvement levy, said Ronald V. Norene, president of R.V. Norene and Associates, the firm handling the bond financing. In the current financial climate, the city could save about 15 percent in construction costs, $30,000 of the cost of issuing a new bond, and between $500,000 and $1 million over the next 15 years if interest rates increase in the future, said city manager Robert Beezat.
