City Hall Refinancing to Save $9.37 Million

Temecula could save nearly $10 million by refinancing the new .

The approved the plan today to refinance $23.21 million worth of debt on the 95,500-square-foot, three-story government building on Mercedes and Main streets in Old Town.

It will also refinance $6.4 million worth of bonds sold to pay for a park and other recreation facilities sold in 2001.

The city decided to do this because interest rates are falling, so refinancing will save tax payers $9.37 million, according to a city report.

The city will go through a private bank, according to the report. The city will have only 20 years to pay off the bonds instead of 27 years after refinancing, and the payments will rise from $1.57 million to $1.65 million annually, but the total paid will be less in the end.

The Civic Center, which includes a parking garage, cost $73 million and opened at the end of last year.

To read the city's report on the plan, click on the PDF file above.

The city sold $24.54 million in bonds to pay toward the Civic Center. It currently owes $23.21 million on those bonds with an interest rate of 4.8 percent, according to city records.