SMITHFIELD – The Smithfield Town Council has voted to refinance their Electric Revenue Bond debt. In 2007, the Town issued a $5 million Electric System Revenue Bond to provide for construction of an electric substation on Brogden Road.
Southern Bank & Trust providing financing for the bond in 2007 and in 2014 agreed to lower the interest rate from 4.03 to 3.25 percent. In 2015, the bank lowered the rate to 2.89 percent.
At the request of the Town, the bank has again agreed to lower the interest rate from 2.89 to 1.95 percent. The next payment is due in August 2022.
There are six years remaining on the bond repayment. Savings from the reduced interest rate will save taxpayers about $61,000.
The council voted unanimously to approve the interest rate modification on the loan.
It is good to know that there are a least a few Fiscal Conservatives still around!
I’m sure the council has already found another place to waste that $61,000 they just saved