Financing and steps to secure funding were discussed at the Kinder Council meeting Monday as the council did some housekeeping to keep moving forward in securing bonds to refinance sewer bonds.
The sewer project was completed in 2011, and the town received a $4 million loan and $2 million grant. The town wants to refinance the bonds at a lower interest rate resulting in savings of $15,000 to $20,000 a year.
The council heard a lengthy presentation from bonding attorney Mike Busada and municipal advisor DeDe Riggins on the steps toward refinancing these sewer bonds. The first step was whether or not to amend Resolution No. 2021-05, which was adopted March 1, 2021. The council learned if it chose to combine its revenue from water, gas and sewage together for repayment of bond monies, it would secure a better rating. It was explained when borrowing, a person’s credit rating was used. In this case the city government had no credit rating but it could secure a better rating by combining its utility revenue. This process would allow the council to use funding from any of these accounts to repay the bond debt, and with ample sources to repay monies, it would secure a better rating. It was compared to insurance. The town agreed to amend the present resolution.
Because of the change in the resolution, the town tabled conducting a public hearing for Ordinance No. 866 which would provide for the issuance of $4.5 million in Sewer Refunding Bonds, Series 2021 until the next meeting. At that meeting, the town will hear the details of refinancing the bonds and decide whether or not to take action to do so. The hearing will be on May 3, at the 6 p.m. meeting.
The town learned the refinance bonds would be for a period of 25 years instead of 40.
In other business, the council:
•Learned its engineer had completed the application for LWI (Louisiana Watershed Initiative) funding for drainage improvements in Nixon Addition.
•Heard it was still awaiting FEMA dollars to make park improvements, purchase signs, etc. associated with damages caused by the hurricanes.
•Learned they were waiting on the rescue plan dollars to be awarded to the town and how it could utilize the dollars. Early estimates suggest the town will receive $870,000, but the mayor said it could be more if they base it on the town’s budget.
•Heard at the next meeting the police chief would ask the town to hire Taylor Jackson full time.
