County Manager Charles “Tink” Jackson said the move could save taxpayers $460,000.
Payments on the loan began in 2008, shortly after Luna County voters decided to have bonds issued to fund the construction of Starmax, the local theater, bowling alley and restaurant/bar.
Luis Ramos of Albuquerque’s George K. Baum and Company Investment Bankers said because Starmax was originally privately owned, the county had to sell taxable bonds. But because the county took over the operation of Starmax in 2012, it has the opportunity to refinance the bonds.
Ramos said they want to take advantage of the current market conditions, adding that refinancing will cut the interest rate on the repayments to about 3%, down from the 6.9% currently being paid, which would save county taxpayers about $460,000 through 2032, when the bonds are projected to be paid
The balance on the loan is approximately $7.5 million.
The county will hold its next discussion concerning the bonds at its regular meeting, slated for 9 a.m. on Thursday, Nov. 13.