The Fraser Valley Metropolitan Recreation District's Board of Directors approved a resolution on Tuesday to refinance a portion of the District's outstanding bonds that will save the district $500,000 and will translate into savings for the taxpayers in the district.
The board faced the decision of moving on the current interest rates or gambling to see if the rates would decrease even more, which would mean greater savings.
Because there was no guarantee interest rates would drop more, the district opted to refinance a portion of their outstanding bonds and to save the remaining portion to see if interest rates would drop in the future.
Unlike a home mortgage, bonds can only be refinanced once, making the question of when to pull the trigger on the refinance difficult. The board could have set a "no less than" number to the amount of savings higher than the amount they decided on with the resolution. However, there was no guarantee that interest rates would drop lower than they are.
"Five hundred thousand is better than a stick in the eye," said Board Member Greg Gallavan.
The resolution that was passed identified a threshold of total savings to the district of no less than $500,000. Once this threshold is met, the district would move on the refinance, which could take anywhere from a couple of days to a couple of weeks.