The City of Billings Finance Department and the City's Bond Counsel requested that the State review interest rates on outstanding and new DNRC loans.  Current market conditions indicate that the DNRC could lower its rates and by doing so, would be competitive with recently obtained bond rates.  The DNRC and the Department of Environmental Quality determined that it is in the best interests of borrowers and the program to reduce the interest rates.

It is proposed that the following interest rates be reduced: 

Series 2005 Bond from 3.75% to 2.25%
Series 2008 Bond from 3.75% to 3.00%
Series 2009C Bond from 3.75% to 3.00%
Series 2010B Bond from 3.75% to 3.00% 
Series 2010C Bond from 3.75% to 3.00%

The Council may:

•  Approve the resolution or
•  Not approve the resolution

The lower interest rates produce an estimated savings of $1,456,055.  

Staff recommends that the City Council approve the attached resolution amending the original resolutions and reducing the interest rates on the sewer bonds.