The tax bills of about 16,000 people in the Natomas area of Sacramento are about to go down. City Treasurer Russ Fehr says the savings will be realized when the city refinances about $28 million in bonds it issued ten years ago.
"Those bonds will be paid off in full and new bonds will be issued," says Fehr. "They'll be sold on the market in May and at a lower interest rate, the same term. So, we're not extending the debt at all."
The bonds were issued in 2005 on behalf of property owners to pay for drainage improvements in Natomas. People pay off the bonds with an assessment on their property taxes.
The savings from refinancing will be about a $250,000 or between $6 and $12 for every property tax payer.
Fehr says the bonds should get a more favorable rating since the de-facto building moratorium in Natomas has been lifted. Refinancing the bonds is on Thursday's Sacramento City Council agenda.