City saves 260K from re-funding bonds

Published 6:00 am Sunday, October 11, 2015

Thanks to a good credit score and lower interest rates, the city of Oxford could save $260,000 over the next decade by re-funding two city bonds.

Financial advisor Demery Grubbs with Government Consultants out of Jackson, asked the Oxford Board of Aldermen Tuesday to adopt an intent resolution that would allow him to re-fund two bonds at a lower interest rate.

One of the bonds is from 2004 and currently has an interest rate of about 3.8 percent. A 2007 bond has a rate of about 4 to 4.25 percent.

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“Right now, we could get them to about 2.33,” Grubbs told the aldermen.

The net savings would equal an average of  $20,000 per year over the life of the bonds.

“What that does for you is generate a net savings of about $265,000 over the next 11 years,” Grubbs said.

The aldermen approved the intent resolution allowing Grubbs to move forward with the re-funding of the bonds. Once the paperwork is complete, he will return to the aldermen to ask for approval to sell the bonds.

In other business Tuesday, the board:

— Reappointed Kate Kellum, Scott Rone and Michael Worthy to the Oxford Pathways Commission.

— Approved a contract with A2H for consultation services for the historic preservation commissions.

— Approved a planning contract subject to legal approval with the Orion Planning Group for the development of ordinance re-writes.

— Approved the final plat for The Heights, phase 3, in Oxford Commons.

— Approved amending the interlocal agreement between the city and county disabled transit services to change one part-time driver position to full-time.

— Approved the partial release of covenants and partial release of right to purchase and right to first refusal agreement with Baptist Memorial Hospital-North Mississippi.

— Approved mayor to sign Memorandum of Understanding between the city and MS Wireless Communications Commission for MSWIN radio use for emergency radios that will allow them to place radio equipment on a city-owned water tower.

— Approved an engineering agreement with W.L. Burle Engineering at the Wastewater Treatment Plant.

— Approved a supplemental agreement with Eubanks Construction Co. for utility relocation on Highway 7 South.

— Approved hiring Scott Allen as a building inspector.

— Heard the first hearing of an ordinance amendment to include eight parking meters to the city’s inventory in front of High Cotton condominiums.