Bonds issued by Ceres for redevelopment projects in 2003 are being refunded to save in interest costs.

On Jan. 12, the Ceres City Council, acting as the board to the Successor Agency of the former Ceres Redevelopment Agency, set in motion a plan to refinance the bonds at current historically low interest rates. Marshall Linn of Urban Futures said that a savings of $1.5 million could be realized.

The 2015 issuance of bonds will not be a debt of the city or its general fund and will be paid back through tax increment.

"When you refund bonds it's the same principal as refinancing a mortgage your house," said Linn. "There are fees to be involved but if it saves you money you go ahead and do it."

In 2011 the state of California dissolved all redevelopment agencies as a way of grabbing millions of dollars in redevelopment dollars in order to balance the state's budget. The action did not, however, forbid successor agencies (called the wind-down agency) from refunding prior debts.

The refunding will be completed in May.