Palmerton Borough Council may see an even greater savings than expected.

Zach Williard, a senior managing consultant for Public Financial Management Inc. in Harrisburg, told council that its bank loan bond bid came back with a lower interest rate than expected and a higher savings.In February, Williard spoke to council about refinancing a $2.4 million municipal bond from 2011, which was originally $9.5 million. The borough had refinanced just more than $7 million of that bond in April 2015 and saved $380,000. Then in June 2015, it secured a $2.5 million bank loan for upcoming capital projects. Since interest rates are so low, Williard suggested the municipality refinance the $2.4 million remaining from the 2011 bond at 3.25 percent interest. He thought the bond could be refinanced at 2.5 percent.On Thursday, Williard was back with good news. The best bid came in with a fixed rate of 2.27 percent interest for seven years. He said he approached 36 banks about a municipal bond and six banks responded with proposals. The best bid came from Lafayette Ambassador Bank.After seven years, 70 percent of the primary amount will reset at a variable rate that can go only as high as 5 percent, no higher for the following three years. The result is a savings upward of $70,000 to $80,000. Ultimately, the savings will depend whether the variable rate reaches 5 percent or not.Council's minimum savings requirement to pursue the bond was $40,000 in savings.Council was thrilled to hear about the savings and low fixed rate. Members said little and voted unanimously to refinance the Wastewater Treatment Plant bond issue. Councilman Kris Hoffner was absent.In other business, Jennifer Hunsinger, a representative from the Community Development Block Grant program, reviewed projects the borough would receive funding for in 2016. She said the purpose of the hearing was to receive public input and comments from the citizens on the use of the funds.In 2015, the borough chose to use the CDBG funds to repave/ reconstruct Lehigh Avenue from Fourth to Fifth streets, Fifth Street from Delaware Avenue to Lehigh Avenue and demolish 3 and 4 Hillside Ave.For 2016, the borough will receive about $92,854, Hunsinger said. Of that amount, $16,713 is for administration and $76,141 is for the cost of the projects. The borough has until May 6 to submit a pre-application. The projects must fulfill three objectives. These include:• Must benefit low to moderate income people with 51 percent or more being low to moderate income.• Address slum or blight issues• Meet a particular urgent community development need.No project will displace people, Hunsinger said. Eligible projects include improvements to public facilities, parks and recreation areas, parking facilities, street improvements, water and sewer improvements, flood and drainage facilities, clearance and demolition, and Americans with Disabilities Act street corner improvements. A second hearing on the projects is expected in September.Council gave Hunsinger a warm welcome, but didn't have any comments or questions for her. There were no comments or questions from the audience either.