—
The Limestone County Water & Sewer Authority expects to save more than $500,000 this year by taking advantage of lower interest rates and refinancing a Series 2004 bond issue.
The board of directors voted 5-0 during its regular monthly meeting Thursday afternoon to give Board Chairman Jim Moffatt the authorization to act on the board’s behalf in moving forward with the bond refund within the limitations outlined in a parameters resolution.
The authorization was required because the LCWSA won’t receive its latest bond rating from Standard & Poor until next week. The parameters resolution requires the interest rate for refinancing the bond may not exceed 2.7 percent.
“I expect the same A-plus rating we got back in 2010,” said Scott Bamman, an accountant with the Montgomery bond underwriting firm, Thornton Farish Inc. “We can’t sell bonds until we get the rating in hand — it’s just not good business. We should hear back from S&P soon and once we get the rating, we’ll go to the bond market next week and get the bonds sold … we’ll put the proceeds into an escrow (account). That escrow will be in place until we call, or redeem, the bond on Dec. 1 of this year.”
An escrow account contains money granted to a person or entity but held by a third party and only released after specified conditions have been met.
During the Dec. 20 meeting, the LCWSA authorized Thornton Farish as underwriter and Haskell Slaughter Young & Rediker of Birmingham as the bond counsel firm to pursue refunding the bond issue.
During the December meeting, Bamman estimated that refinancing the bond would give the LCWSA a present-day savings of $494,00. But he said during Thursday’s meeting that the bond market has improved since then and the actual present-day savings would be $523,000.
“These people will usually do the refunds if the savings is 5 percent or more, and we’re getting a savings of nearly 15 percent (with this bond refund),” Bamman said.
The interest rate on the debt service of the bond was set at interest rates of up to 4.75 percent but refinancing the bond would allow the LCWSA to decrease the interest rate from approximately 4.7 percent to 2.7.
In other business the LCWSA:
• Approved a final change order of $40,734.80 for sewer improvements by Apel Machine & Supply Inc. of Cullman for the Johnson Elementary School force main project. The change order is in a deductive amount of $79,652.51 for the original contract amount of $380,549.54, mainly due to the lack of sod needed for disturbed areas, the minimal amount of silt fence required and the non-use of additional work where directed by the project engineer, according to a Jan. 10 letter from the general contractor, Hathcoat & Davis Inc.
• Accepted a request from LCWSA General Manager Byron Cook to classify six vehicles and two pieces of equipment as surplus and allow LCWSA employees to make offers via sealed bids after current values are determined. Three of the vehicles have more than 112,000 miles, while the other three exceed 250,000 miles and all six are at least 11 years old. The available equipment is a 1995 Rawson Koening utility bed and a 1995 mower Bush Hog.
The next meeting will be at 3:30 p.m. Thursday, Feb. 28, at the LCWSA Customer Service Building.
Local News
LCWSA bond refinancing moving forward
- Local News
-
-
Holladay selected superintendent
The Athens City Board of Education voted 5-2 Wednesday to hire William "Trey" Holladay as superintendent contingent on contract approval. Holladay, a 1987 Athens State College graduate, is the principal of Oxford High School and director of alternative programs and athletics for Oxford City Schools.
-
BREAKING: New superintendent named for Athens City Schools
Athens city school board named a new superintendent at its meeting Wednesday night.
-
Alabama governor signs bill on carrying guns
Alabama's governor has signed legislation that expands where people can carry guns in Alabama.
-
4 teens shot at graduation party in Huntsville
Madison County sheriff's deputies say a fight broke out during the party. Authorities said people jumped someone at the party, who then began shooting.
-
Special Needs Rodeo rescheduled for June 23
The free event will be held from 3 to 5 p.m. at the Sheriff’s Rodeo Arena on Alabama 99.
-
Teacher to be honored by FFA
Blacklidge, who also has a master’s degree from Alabama A&M, said his top priority throughout his teaching career was to promote and propel students in FFA and help them find success after graduation.
-
State, local officials weigh-in on Oklahoma tragedy
What else can Limestone County residents do to help? Kaye Young McFarlen, executive director of the Athens-Limestone United Way, said not doing anything would be the best method of help, for now.
-
Second man arrested over washer, dryer burglary
-
Athens seeks to support Oklahoma
The Police Department is inviting the public to gather Friday, May 24, at noon on the east side of the Limestone County Courthouse. There will be a short commemorative service for the tornado victims and first responders in Oklahoma.
-
North Alabama in slight risk category for severe weather; storms possible through Thursday
- More Local News Headlines
-
Raw: Kevin Durant Tours Moore After $1M Pledge
Weiner Launches Bid to Become NYC Mayor
Okla. Teens Get Video of Deadly Tornado Overhead
Man Shot While Questioned in Boston Probe
School Storm Protection Spotty in Tornado Zones
9-year-old Tornado Victim Loved Family, Singing
Moore Native Toby Keith Tours Tornado Damage
Oklahoma Survivors, Heroes Survey Damage
Okla. City Mayor: Up to 13K Homes Hit by Tornado
Raw: Aftermath of Deadly Attack in London
Paperless Scanner, Vision of the Future
Florida FBI Shooting Has Boston Bombing Links
Garcetti Elected Los Angeles Mayor Over Greuel
Raw: New Video of Deadly Oklahoma Tornado
IRS Official Pleads 5th Amendment
Lawyer: Feds Investigating Susan Powell Case
