Rural utility gets break on bond debt

Published 7:47 am Wednesday, September 21, 2016

The Bogue Lusa Waterworks District recently refinanced some outstanding loans, saving tax payers more than $150,000.

The savings comes from bond refinancing which, manager Mary Adams explains, took 30-year bonds and reduced them to 20-year bonds, thereby reducing a decade’s worth of interest. All told, that interest would have been $158,798, according to the state treasurer’s office.

The state approved the plan last week, and although the whole matter was routine, Adams said it’s still a bit of good news.

“You don’t get too much flexibility in the interest rate market,” she said.

The bonds total $1.3 million and they were used for routine improvements and maintenance. Adams explained the state’s bond commission approached the water district and notified them they could be eligible for the refinancing.

“When they see there’s a chance of having some savings on public entities they say, ‘Hey, you might want to look at this,’” she said.

“This is one of the first times we’ve ever had it happen,” she said.