Thomason Hospital CEO Jim Valenti said this will now be between $1.50 and $1.70 a month.

The change was announced as the district asked for approval on Monday from Commissioners Court to sell the bonds.

"I'm glad they're trying to be a little efficient with our money," Eastsider Judy Tarter said.

Valenti said the reduction came largely because last week Fitch and Standard & Poor's, two national independent credit rating agencies, upgraded the hospital district's bond rating from A+ to AA-.

"It essentially got a good credit rating, and just like with people, the better the credit rating, the lower the interest rate," Commissioner Veronica Escobar said.

Valenti said the hospital district will save about $4 million on the hospital's construction.

He also reminded the court and the public that the children's hospital will not be a taxing entity.

In addition to formally approving the sale of the children's hospital bonds, the court also approved the sale of $39.9 million in bonds to pay for bonds previously sold.

Thomason Hospital Chief Financial Officer Phil Rivera said the 1998 bonds, now totaling about $13.2, million, paid for the hospital's north tower expansion. The 2002 bonds, totaling about $22.3 million, funded equipment purchases and upgrades.

Although the court approved the refunding, the district has 180 days to decide whether to act.

"Now, it's not an attractive option," Valenti said. "At today's interest rates, the refunding does not make sense economically."

If market conditions improve, the hospital district may move forward and could potentially save about $1 million with the refunding of both bond series.

"It's a major, historical day for El Paso," Valenti said. "This allows us to provide more services and programs to our children for many generations to come."

Erica Molina Johnson may be reached at emolina@elpasotimes.com;546-6132.

In other action

Also Monday, Commissioners Court:

Approved spending $17,400 for technology that will allow people to pay citations using the internet.

Approved establishing a no parking zone on the 3500 block of White Tail Deer Drive in Montana Vista during school hours.

Approved lowering the speed limit on Westside Drive from Borderland Road to the state line from 55 miles per hour to 45 miles per hour. A school zone was also approved for the area near the new Garcia Elementary School.