Low Interest Rates Helping Yakima Get Street Repair Loan - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Low Interest Rates Helping Yakima Get Street Repair Loan

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YAKIMA, Wash.-- Money to fix 28 miles of Yakima's streets is coming from a not so traditional source.

Typically, the city would sell bonds to pay for the $5-million repair project, but officials say interest rates are so low right now it's cheaper to just take out a bank loan.

And not only is it going to save money in the long run, but officials say it's more than $30,000 cheaper to apply for a bank loan than a bond.

"We've not ever done this before at the city, in my tenure which is over 20 years. But, the market rates are such that it makes sense this time," said Cindy Epperson, director of finance and budget for the city.

Epperson says they'll be locked in to low interest rates for the first five years of repayment, but after that the bank could raise their rates. Epperson says they could get out of the loan though, if the rates go too high.
 
The city hopes to start work on the road repairs by early June.

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