The Fishers Redevelopment Commission Wednesday took the first step toward refinancing city bonds utilized to build the local YMCA.  The interest rate on that debt is currently set at 4%.  The Commission Members were told by staff that a refinanced rate would be between 1.6% & 1.7%.  That would save the city about $350,000 over the remaining life of the bond payback period.

City Controller Oscar Gutierrez said the city could glean an up-front benefit of $175,000 based on the details of the debt restructuring.  Gutierrez said the savings would go into the city’s general fund and could be used for software updates for many outdated city systems, but emphasized no final decision has been made by the mayor on how to use the refinancing funds.

When the Fishers YMCA was constructed, the city issued the bonds and the YMCA pays the city a monthly rental fee.  That rental fee will not change under this debt restructuring, according to Gutierrez.

The Redevelopment Commission unanimously approved the refinancing plan, but the process is just beginning, with more actions to be taken before the refinancing is complete.