By Karen Middleton
The Limestone County Water and Sewer Authority can save $24,000 a month over the next 14 years of a 1998 bond issue by refinancing, according to Interim Manager Tammy Smith.
Smith said Friday that when the water board met recently with Scott Bammon of Thornton Farish, Inc., the authority’s bond agent members learned it is to the advantage of the utility to take advantage of the refinancing option now.
“In November the board had authorized Scott Bammon to look into refinancing the bond issue,” said Smith.
Smith said she had sent a copy of the 2009 audit, which showed the authority passing both bond tests, to Bammon.
“We needed to see where we were and if we needed to be borrowing money,” said Smith. “The board will most likely go ahead and refinance the loan, but whether they will put something with it I don’t know.”
Smith said the 1998 bond issue was for $12.9 million. Refinancing the revenue bond would save nearly $300,000 over the life of the loan.
Smith said in November that the money should go into the reserve fund because two of the authority’s bond insurers have been downgraded, requiring that the authority make monthly payments into the Debt Service Reserve Fund.
