The Knox City Council heard a report from Mayor Rick Chambers this week on a proposal to refinance the Knox Community Center bonds.
“John Julien from Umbaugh and Associates called the other day and he had mentioned this to Jeff (Houston) and I about a year ago,” explained Mayor Chambers. “The interest rates are down. The interest rates on our current loan is 5.5% and he thinks interest rates for 2.9% could be had if we put this out for bid. This loan will be paid off in 2019. Over the length of that loan, if we can bond for 2.9%, we would save $55,000. That’s a little misleading because we have $32,000 currently in an escrow account with First Monterey Bank. So, with the expense of redoing that bond and being able to use that $32,000 now, subtract the $32,000 from the $55,000 – over the course of this loan we’d be saving $22,000.”
The Council voted to table the matter, although Councilmen Ed Blue and Linda Berndt said, “$22,000 is better than nothing.” They also instructed City Attorney David Matsey to gain information on the escrow account at the First National Bank of Monterey, and give a report on it at the next meeting.