Sherwood Finance Director Katie Henry recently announced a savings by the city of more than $920,000 to ratepayers over the next 13 years through the refinancing of $9 million in construction loans held by the city of Sherwood's water fund. This refinancing lowered the interest rates from an average of 3.7 percent for the two loans to 2.29 percent. The city received competitive bids from several banks on April 26 with Columbia Bank being selected as the winning bidder.
"The low interest rate and favorable terms of the loan reflect the confidence of the financial market in the city's strong financial policies and prudent financial management," said Henry. The city anticipates that the final closing for the refinancing will be complete by May 16.
City Manager Joe Gall compared the refinancing to someone refinancing their home.
"This is pretty cool news," said Gall, noting that the city initially thought the savings would be in the neighborhood of $600,000. "What that means for water rates, there will be less pressure to increase our rates."