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Spokane Valley to save by refinancing 2003 bond

Spokane Valley plans to shave at least $190,000 from its long-term debt by refinancing the remaining balance of a 2003 bond issue at lower interest rates.

It would reduce annual repayments by about $21,000 a year over the next nine years, said city Finance Director Mark Calhoun. The savings would be committed to street-related capital improvements.

The city issued $9.43 million in long-term bonds in 2003 at interest rates ranging from 2 percent to 5 percent.

Of the original bond issue, $2.43 million was dedicated to street and transportation improvements and is being repaid by the city’s share of real estate excise tax revenue. About $1.45 million is still owing on that portion.

Most of the borrowed money, about $7 million, was used to pay for construction of the CenterPlace regional meeting center and is being repaid by the Spokane Public Facilities District. Nearly $6 million is still owing on that portion of the bond issue and would save the PFD an estimated $1.2 million.