The Desloge Board of Aldermen approved two ordinances Monday night that City Administrator Greg Camp believes will, through the restructuring of debt, keep the municipal water system financially solvent as well as save the city considerable interest by the issuance of waterworks revenue bonds.
The first ordinance allows for the execution and delivery of the $1,380,000 principal amount of refunding and improvement of Series 2015 Certificates of Participation (COP) for the purpose of financing the advance refunding of certain Series 2011 certificates. The second ordinance authorizes the city to issue Waterworks Revenue Bonds.
Camp explained why the board unanimously passed the two ordinances.
“At the end of the day, passage of the two ordinances accomplishes two things” Camp said. “First, it restructures the debt and allows the water system to be able to work freely and independently of any support from the city and the general fund.
“Secondly, we’re taking advantage of essentially a very attractive interest market right now. We’re saving the better part of a point to a point-and-a-half on interest just on the COPs. On the waterworks revenue bonds we will be saving about the same amount at least in the short term.”
Kevin Jenkins is a reporter for the Daily Journal and can be reached at 573-518-3614 or email@example.com