The Laurel City Council approved a resolution this month authorizing the refinancing of up to $3 million in obligation bonds.
In a vote of 7-0, the council voted during its regular Tuesday meeting to approve a resolution allowing the mayor and City Council of the City of Laurel to hire professionals in connection to the refinancing of general obligation bonds of the city in one or more series for up to $3 million.
According to city documents, the refinancing is in connection with the city’s equipment lease purchase agreement (No. 001543-1 ) dated as August 30, 2017, and for other related purposes as authorized under Mississippi law. The resolution states that the governing body has determined that the city can realize financial benefits by issuing general obligation refunding bonds in an amount not to exceed $3 million to refinance all or a portion of the lease purchase agreement and related items.
However, in order to prepare the necessary resolutions and documents for the sale and issuance of the bonds, city leaders determined it is in the best interest of the city to authorize the law firm of Butler Snow LLP of Ridgeland, Mississippi, as bond counsel; Hortman Harlow Bassi Robinson & McDaniel, PLLC, of Laurel, as city counsel; and Government Consultants, Inc., of Madison as its municipal advisor to prepare and distribute such resolutions and documents necessary in order to facilitate the sale and issuance of the bonds of the city at a later date subject to the approval of the governing body of the city.
Also, the resolution states that it is necessary and in the public interest for the city to negotiate for the sale of bonds and to engage Duncan-Williams, Inc. of Memphis, Tennessee, as underwriter or private placement agent, as applicable, to facilitate the sale of the bonds subject to the approval of the city’s governing body.
“This is not new money, Council president Tony Thaxton said. “We are refinancing in order to get better interest rates.”
City Clerk Mary Ann Hess said that the city officials have reviewed this matter and believe refinancing could result in a saving of more than $200,000 to the taxpayers.
“Refinancing should save us money,” she said. “We know it will be a savings of more than $200,000 and that’s a lot of money.”