The city of Northport plans to use the savings from a bond refinancing for a downtown streetscaping project.

The Northport City Council approved plans Monday to refinance the remaining debt on bonds issued in 2009 using a 10-year loan from Regions Bank for up to $5.3 million, which is expected to save the city more than $515,000. The savings from the refinancing will be earmarked for improvements to the downtown streetscape, Interim City Administrator Hardy McCollum said.

The interest rate on the loan is 2.19%, McCollum said.

The city staff recommended suspending the rules to consider and vote on the resolution Monday because of the favorable market conditions for the loan.

“We got a very favorable interest rate,” McCollum said.

The city explored refinancing with another bond issuance, but McCollum said the bank loan presented a more favorable option with lower administrative fees. The bank option was about $13,671 cheaper annually than the bond issuance, McCollum said.