Officials say they can save money by refinancing bonds
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Members of the Board of Mayor and Aldermen passed two resolutions allowing for refinancing $1.6 million in public works refunding bonds as well as about $3.7 in water and sewer system revenue and tax refunding bonds.
“We are not indebting the city any farther than it already is,” Mayor Royce Davenport said upon a suggestion of Aldermen Patti Nunley, who requested an explanation to the public in attendance Monday. “We’re actually making it easier and quicker to get out of this debt.”
Davenport said City Administrator Herb Llewellyn, Finance Committee Chairman Billy Wood and the rest of the committee were responsible for looking into refunding the bonds, but noted it would cost between $60,000 and $80,000 to recall and reissue them.
Officials meeting for the Finance Committee earlier Monday said the savings includes the costs of refinancing and voted to recommend the issue to the full board.
In other business, officials did not vote on a resolution to authorize a $2 million capital outlay note as was originally listed on the agenda, with Davenport noting the Finance Committee was to reconvene to discuss it after its regular business.
Later, committee members approved a recommendation to the full board for a $2 million note.
Officials also passed another resolution to authorize the purchase of two police sedans for about $34,000 and another police vehicle for about $21,000. Wood and Nunley voted no.
Officials also passed an ordinance to annex about .30 acres of land known as the Foster and Brewer tract, allowed for a grant application and passed a motion that the city accept official sponsorship of the annual Christmas parade sponsor as previously requested by Leadership Warren. A letter written to board members last month noted liability issues as the reason.