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S.D. Council Voting on Ballpark Bonds

San Diego city council will vote today on whether to refinance a $170 million worth of ballpark bonds. KPBS reporter Alison St John has more.

S.D. Council Voting on Ballpark Bonds

San Diego city council will vote today on whether to refinance a $170 million worth of ballpark bonds. KPBS reporter Alison St John has more.

The city of San Diego is still excommunicated from the public bond markets, thanks to a long delay in getting its 2003 audits approved. But Chief Financial Officer Jay Goldstone says the city could save money by privately refinancing the Petco Park lease revenue bonds.

Goldstone: The financial markets still want to loan us money at a minimal premium to my surprise. I think we’re going to be able to save about $3.8 million a year.

Bank of America is willing to lend the money at interest rates between four and five percent. The original bonds were sold in 2002 and the city has been paying around seven or eight percent interest because of the legal uncertainly surrounding the city’s finances.

The city council’s independent budget analyst Andre Tevlin supports the idea, noting the city can still resell the bonds on the pubic market once its credit rating is restored.

Alison St John, KPBS News.