North Jefferson News, Gardendale, AL

May 23, 2013

Refinancing to save Fultondale up to $1 million over 20 years

By Robert Carter
North Jefferson News

FULTONDALE — Much as a homeowner refinances a mortgage to save money, the city of Fultondale is doing the same with a bond issue.

The Fultondale City Council voted in Monday’s regular session to issue a $12.5 million refunding and capital improvement warrant through Regions Bank, which would replace a similar bond issued in 2010 to fund various projects, including the new elementary school.

The refinancing will drop the interest rate from 4.35 percent to 2.61, and will result in an annual savings of about $50,000 over a 20-year amortization — roughly $1 million over the life of the issue, according to David Germany of Regions.

In other matters, the council: