PONCE DE LEON - The town of Ponce de Leon hopes to save nearly $130,000 by refinancing two existing USDA loans.

Council members voted to make application for a consolidation refinance during a called meeting Jan. 11

The Town originally applied for the bonds decades ago - the first being approved in the early 80s for water improvements and the second in the early 90s for sewer projects.

Council members say that although the Town has made all payments on time, they have proved to be a financial hardship.

Should the new consolidated loan be approved, the total amount refinanced loan will be $681,800 and reduce the years of debt service from 19 years to 13.

The $63,924 annual payment will remain the same, but the annual fixed interest rate will decrease from 4.88 percent on the sewer loan and 7.13 on the water loan to one rate of 4.4 percent, which is projected to save the Town approximately $129,565 over the course of the refinance.

The Town expects to receive an answer to the application sometime in February.