Home » Bond refinancing to save Webster taxpayers $376k

Bond refinancing to save Webster taxpayers $376k

by Minden Press-Herald

Figures from the bonding attorney for the Webster Parish School Board show refinancing bonds will save taxpayers $376,835.

Bonding attorney Grant Schleuter, of Foley & Judell, LLP, says it came out better than anyone expected.

“The refinancing will save a considerable sum of money,” he said. “This is for the sales tax bonds for sales tax district 6. We sent out a request for proposals to banks providing that there would be no extension of the debt, and we would simply be seeking to reduce the interest rate.”

The low bid came in from Whitney Bank, with bids coming in from Capital One and Regions Bank. Whitney Bank’s bid came in with an interest rate of 2.24 percent.

The average savings per year is about $35,000, Schleuter said.

“The state bond commission guidelines provide that you should have at least 1.5 percent savings for refinancing of this type, and you have 5.35 percent,” he said, “so you have over three times the recommended amount. It’s a very good refinancing.”

The grand total of what the school board has saved the taxpayers over the years, he added, is in the neighborhood of $4.7 million. These include refinancing for bonds for consolidated school district 3, Minden school district 6, sales tax school district 6, Doyline school district 7, Springhill school district 8, Cotton Valley school district 12 and Sarepta school district 35.
The school board unanimously voted to adopt a resolution authorizing the refinancing of bonds from sales tax school district 6, series 2015.

In other news, a resolution was adopted to accept canvassing of the parish from the Oct. 24 election authorizing the renewal of the 2.82 mill property tax for another 10 years.

“This resolution is to canvass the returns that authorized 2.82 mills,” Schleuter said. “Upon adopting the resolution, we’ll make all the post adoption filings.”

Making the motion was board member Ronnie Broughton, seconded by board vice president Johynne Kennon, and was passed unanimously.

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