The city of Hermitage will save $200,944 by refinancing bonds issued in 1999 and issuing new ones.

The bulk of the savings will show up this year. Instead of paying $362,000 on Aug. 15, the city will spend $178,000, said Michael Zubasic of PNC Capital Markets, which is handling the refinancing.

Commissioners approved an ordinance Monday authorizing refunding $6.3 million in bonds and issuing $5,830,000 in new bonds. The city is saving money by issuing new bonds at lower interest rates, said Lisa Chiesa, partner at the law firm of Thorp Reed and Armstrong, Pittsburgh, the city's bond counsel.

The rates on the old bonds rose from 3.8 percent to 4.75 percent. The new bonds, which already have been sold to investors, carry interest rates starting at 1 percent and rise to 3.8 percent in 2018, when the bonds mature, Zubasic said.