Saluda pays off land early for almost $3k savings

Published 10:54 pm Tuesday, May 21, 2013

The City of Saluda decided to use fund balance to pay off the city parking lot parcels early.

Saluda Commissioners met May 13 and approved the expenditure, which will save the city $2,890. Saluda Finance Officer Ron Cole said the city’s current fund balance is at approximately 40 percent of its general fund, or $378,311.

The city took out the loans for two parcels of land that is used as a parking lot for both school bus drop-offs and the weekly farmers market. The loans were taken out in December 2007 and January 2008, for $43,750 for each parcel, or $87,500 total. The loans were received at a 4.1 percent interest.

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The city owed $15,467 remaining on each loan, and paid off the balance last week totaling $30,935.

Commissioners agreed that the payoff was the best decision for the city, especially considering if the city needs to take out another loan, it could do so for less than 4.1 percent interest.