The city of Pelham will save $700,000 by refinancing two bond issues, according to Mayor Bobby Hayes.

The money will go toward capital improvements.

Mayor Hayes said Pelham is able to refinance due to Hurricane Katrina regulations.

&8220;We are able to do so because we fit within the federal guidelines. With refinancing, the maturity date will not change and the payment remains the same,&8221; said Hayes.

The city is refinancing two bond issues that helped build a wastewater treatment plant in 1992 and the Pelham Racquet Club in 2000.

Hayes said Finance Director Tom Seale has done a great job in saving the city a tremendous amount of money.

&8220;This is not a surprise that Tom has made this possible,&8221; said Hayes.

Seale said all of the city&8217;s interest rates for bonds are now less than four percent. &8220;We have a very strong financial position. We take every opportunity we have to save the city money and save revenues,&8221; said Seale.

The $700,000 that will come out of the bond is expected to be paid out in January.

Federal law requires the city to spend the money only on capital improvements and within a certain time frame. Mayor Hayes said the city isn&8217;t completely sure how they will spend the money, but when something comes up, they will be prepared.