The Madison City Commission gave its approval on Monday to a proposal to refinance the remaining amount owed by the city on a 2004 taxable-bond issue.
City Finance Officer Jeff Heinemeyer explained to the city commissioners that if the refinancing was successful, Madison could save from $400,000 to $600,000 in payments over the remaining life of the bonds.
The city still owes $3.58 million to pay off the taxable bonds that financed the construction of Madison's electricity generation plant. The current payment schedule ends in 2025.
If the savings stand at the $600,000 mark, inflation - at current levels -- would only decrease the savings to about $500,000, according to Heinemeyer.
The commissioners gave the mayor and city finance officer the authority to conduct the refinancing work.