The council also met for a second reading on an ordinance authorizing the issuance of general obligation refunding bonds for the Wellness Center.
The ordinance was passed unanimously in favor of refinancing.
The University and brokerage firm, Hilliard Lyons, proposed a refinancing to the city due to lower interest rates.
The passing of the ordinance will save the University nearly $80,000 a year, with total savings over the life of the bonds exceeding $1.2 million.
In 2002, the city financed the Wellness Center for $10 million.
Hilliard Lyons issued the bonds, used to cover the expense, with a bond life of 30 years.
Tom Denton, vice president of Finance and Administrative Services, said 10 years have passed since the original agreement, and since the market has become favorable for refinancing.
This improved market caused the University to reevaluate the original agreement and paved the way for refinancing.
Alan Lanier, city director of finance, said the approval of the ordinance allowed the bonds to go on sale Wednesday.
The University will pay less in the long run for the Wellness Center, while student fees, which are used to pay off the bonds, will remain the same.
Denton said with a potential $3.3 million dollar reduction in state appropriations, it is not likely the savings will result in a reduction of student fees.
“The University already subsidizes the operation of the Wellness Center far beyond the savings that will be realized on the refinancing of the bonds,” he said.
Denton said actual savings will be based on the market and could be closer to around $70,000 per year.
The money saved per year is not enough to call for a reduced student fee. Divided among more than 10,000 students the savings would be minimal.
President Randy Dunn said the ordinance will give Murray State the opportunity to save money with possible upcoming budget cuts.
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