ELKO — The City estimates it will save more than $1.5 million from estimated costs after accepting a low interest rate for an $8 million bond.
City Manager Curtis Calder said the City received five bids on a bond that would refinance the California Trail Interpretive Center bond, fund a golf course irrigation project and a portion of a new sports complex.
Janney Montgomery Scott LLC was the low bidder with an interest rate at about 2.6 percent. The company also paid a premium of over $540,000.
“We never expected to do that well,” Calder said at the last City Council meeting.
Administrative Services Director Dawn Stout said the City had estimated a higher interest rate that would have cost the City an additional $1.5 million. Calder said the estimates were around 3.5 percent.
Additionally, the City generated $20,000-plus a year in savings on the refinancing of a 10-year California Trail Center bond of about $1.26 million, Stout said. The previous interest rate was over 4 percent, Calder said.
Another $1.2 million of the bond will go toward the golf course irrigation system, leaving almost $6 million for the construction of a sports complex, Stout said.
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Stout said the City will probably move forward with the golf course irrigation first, and will request to go out to bid as soon as possible.