At the first of the year, the City of Waldron began looking at refinancing their 2015 bond for the purpose of acquiring a more favorable rate. On Thursday evening, April 16, the council approved that motion to refinance with Ordinance number 2020-2.
Kevin Faught, Senior Vice President of Public Finance with Stephens, Inc., was present to explain in more detail the structure of the existing and refinanced bond. “As we discussed the refinance, we began to look at extending the term and keeping the payment close to the same amount for the purpose of obtaining additional construction funds to be used for additional water and wastewater improvements,” explained Faught. “The City has existing funds for improvements from a 2016 Sales Tax Bond; however, the funds are not sufficient to complete the scope of work that is needed. The refurbishing of our water storage tanks has become more of a priority and will be a costly endeavor, leaving only a small amount for other improvements in the system. The refinance of this bond along with an extension on the bond will provide approximately $900,000 in construction funds that will used for rehab and repair of the water storage tanks, fire hydrants, manholes, water line replacements, sewer line replacements, and other system upgrades.”
The move lowers the city’s interest rate to 2.93% and extended the term for five years. “We anticipate our rates to continue on the same schedule, that includes a slight annual increase,” stated City Clerk/Treasurer Sherry Johnston. “All the new construction will be financed by the bond.”
The council unanimously approved Ordinance 2020-2, and enacted the emergency clause.
