Refinance the parkway
It’s hard to see much downside in the plan put forth by Grand Junction City Manager Laurie Kadrich and her staff to refinance the bonds for the Riverside Parkway.
The plan would lower the interest rate on the bonds from 4.78 percent to 2.74 percent and allow the city to save roughly $7.3 million in reduced interest costs over the next decade. Additionally, by paying off in 2014 one series of the two series of bonds sold for the parkway, the city will further reduce its annual payments. The result will be a total estimated savings of $21.4 million on the cost of the bonds to city taxpayers, compared to what voters originally approved when they passed the ballot measure for the parkway.
City officials and City Council members will discuss the refinancing at an open house beginning at 7 p.m. tonight at City Hall.
A few folks who are critical of every action the city takes may whine that this will push the anticipated payoff date for the bonds back a few years to 2021. But that matters little when the city will save $7.3 million in interest payments and the bonds will still be paid off three years earlier than the 2024 date projected when voters first approved the bonds.
What homeowners wouldn’t be tickled pink to drop their mortgage interest rate two points and significantly reduce their monthly payments as a result. The net savings would be huge, and monthly disposable income would rise significantly, even if the payoff for the mortgage is pushed back a few years with the refinance.
This is a sound financial move for the city, and we hope City Council members will quickly approve the refinance plan.