Refinancing bonds at today's lower interest rates will save Davis County $158,000 over the next five years, County Commissioners said Wednesday, approving a refinancing package on flood control and mental health construction bonds.

The county will save $68,000 in interest on the mental health facility bonds and about $90,000 in interest on its flood control construction bonds, according to bond advisor Larry Denham.The commission refinanced $755,000 still outstanding on $1.1 million in bonds it issued in 1981 as the Municipal Building Authority of Davis County. The current interest rate on the bonds is 6.85 percent, compared to the 12.77 percent a decade ago.

It also refinanced $4.2 million in general obligation bonds out of the $12 million sold in 1983 for flood control projects. The interest rate will decline from 9.27 percent to 5.88 percent.

Interest rates on bonds have been declining steadily, Denham said, and he has been watching the market carefully, looking for the right opportunity to refinance.

Rates could fall still further, he advised the commission, but "this is a bird in hand, a sure thing."