The 2009 Crossroads project, which is set to be paid off in 2024, is now to have it's bonds refinanced and refunded. This morning, the council voted 5-0 to do this in order to save the city money over the next five years as the project is being paid off. When the bonds were issued in 2009, the interest rate, due to the market at the time, was five percent. In today's market, Butler Snow LLP is looking to get the current bonds refunded to issue new bonds around a 2.5 percent interest rate. With this new rate, the city can save nearly $40,000 each year, resulting in nearly $250,000 by the time it's paid off in 2024.
“It frees up cash, so if the city needs to buy police cars, dump trucks, or do paving—you’ve got additional cash that you can use for other things instead of paying a higher interest rate." said Tray Hairston who is a Partner in Butler Snow LLP. Hairston claims interest rates have been lower not only in Mississippi but across the entire county over the past six months. The payment term will not be changing along with the price of the principal payments.