The Daleville Water and Sewer Board approved the issuance of a bond at a special-called meeting on March 9.
The approved $2.185 million bond was issued to pay off a bond issued in 2011 as well as save money on lowered interest rates.
Brian Spear with The Frazier Lanier Company explained the process to the board.
“Where interest rates are so low, we can go in and issue bonds at today’s rate, pay off your old bond, pay the expenses of the issue—all that’s included—and your net figure is $111,093.08 plus the refunding on hand,” Spear said. “In other words, we can borrow money at this rate, pay off the old bonds and if we keep our payments the same, then $111,000 will be on table—that’s what will be left over at closing—for you to spend on additional capital improvements, whatever they may be.”
Board Attorney Henry Steagall likened the process to refinancing a home.
This was a comparison that Spear said was accurate.
After hearing from Spear, the board voted unanimously to approve the issuance of the bond.
In other business, the board unanimously approved a municipal water pollution prevention resolution at the meeting.
The resolution had originally been tabled at the Feb. 18 meeting until the board members could receive a MWPP annual report.
After reviewing the report and coming to a consensus that the city was performing adequately in its water pollution prevention role, the members voted to adopt the resolution.
The next meeting of the Daleville Water and Sewer Board will be April 21 at 4:30 p.m. in the council chambers at Daleville City Hall. The meeting is open to the public.