Bond issue refinancing produces $965,509 in savings over 13 years
The Plaquemine Board of Selectmen voted at its meeting Sept. 8 to give final approval for refinancing two bond issues, which will produce $965,509 in savings over 13 years for the City. The refinancing was proposed and led by Mayor Edwin “Ed” Reeves, Jr.
The City will save $686,000 on its 2010 road improvement bond issue. Because this is a dedicated bond issue, the savings must go to road and drainage improvements. The City will save $279,000 on the 2013 electrical system transformer bond issue, and that also is a dedicated bond issue. The savings on that bond issue must go to utilities, so they will go to sewer system improvements.
These savings are over a 13-year span – so the annual savings amount to approximately $52,769 for the road/drainage fund; and $21,462 for the utilities system.
City Bond attorney Steve Nosacka noted that the city got an A++ rating for the bond issues, which is the highest rating offered. That enabled the city to reduce the bond interest rates from 4 percent to 5 percent to below 2 percent - cutting the interest by more than half. “It was certainly the right time to refinance for the city,” noted Nosaska.
Mayor Reeves credited City Finance Director Laurie Berthelot with the hard work on the bond issue refinance. “She read hundreds of pages of documents required for this and did a great job in watching out for the City,” he said.
“I am very pleased we are able to provide these savings, which I will propose being used for much needed drainage and sewer improvements,” said Mayor Reeves. “I am working on a plan now to initiate additional drainage improvements in 2021, and the city’s present sewer system needs are well over $1 million.”