The move will save the town $82,000, Mayor Julia Meacham said, and will allow the town to pay off the debt three years earlier than through USDA.
According to a copy of the resolution read by interim Finance Director David Overton, the refinancing agreement will allow the town to pay off the debt in 2026 rather than 2029.
The bank's interest rate is 3.810 percent while the USDA rate is 5 percent. “The proposed contract is preferable to a bond issue for the same purpose because it would be the least expensive form of refinancing with Branch Banking & Trust and a savings for the citizens of the town of Weldon.”
The resolution says there will be no need to increase taxes to pay off the loan and the town is not in default on any of its debt service obligations.
Overton said during a public hearing on the matter, in which no one spoke, the general obligation bonds were for $670,000 and they have been paid down to $453,000.
During the regular meeting following the public hearing, Earl Smith made the motion to approve the measure and Martha Alford cast the second.
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