Othello refinances Main Street debt

OTHELLO — The Othello City Council voted unanimously on March 28, 2017 to refinance roughly $2.7 million in outstanding city bonds, reducing the city’s debt payments.

According to Cynthia Weed, a bond attorney with Seattle-based K&L Gates, the refinancing deal will allow the city to reduce its interest payments and even pay off the $2.7 million — bonds issued in 2010 to finance the reconstruction of Othello’s Main Street — earlier than originally expected.

“There are savings to be had,” Weed told the city council.

Weed said she would not have any exact figures on how much the city could save until the deal is completed, likely sometime in early April after bids from interested banks are received. The city will be issuing new bonds to pay off the previous bonds, but will not see any new money from this issue.

Weed said she expects the city will be able to cut about 5 percent from its current debt payments.

“This is the direction to go for savings,” Othello Mayor Shawn Logan said after the vote.

Charles H. Featherstone can be reached via email at countygvt@columbiabasinherald.com.