On Sept. 22 the Shreveport City Council will again vote on the proposed $50 million dollar bond refinance of Water & Sewer bonds and the proposed $30 million dollar bond "line of credit" for potential budget shortfall.
If the last meeting of the Council is any indication, the discussions before the vote could be quite spirited. Hopefully there will by no post-vote verbal comments that marred the Sept. 8 meeting.
SETTLE TALK readers have posed many questions on the proposed $50 million bond re-finance:
1. What will be the total attorney fees, advisor fees, etc for this package which will be paid out of the bond proceeds?
2. What is the outstanding balance on the bonds to be refinanced and what is the current interest rate?
3. What is the anticipated interest rate and terms of repayment on the proposed bond refinance?
4. What is the savings per year on bond repayments with the new package?
5. What is the current repayment term on the bonds and what will be the term on the refinance bonds?
6. What dollar amount will be bond refinance save in 2020?
7. How much more will be paid on a bond refinance versus continuing with the present bonds?
Similarly many questions have been asked about the proposed $30 million bond package:
a. What will be the total attorney fees, advisor fees, etc. for this package?
b. When will the City begin to accrue professional fees, and if the bonds are not sold what will be the source of payment of these fees?
c. How was the bond amount of $30 million tabulated and is that calculation current?
d. What is the anticipated interest rated and terms of repayment on this proposed bond package?
e. What amounts of budgeted expenses for each city department will most likely not be spent due to COVID, unfilled job positions, etc. ?
f. What is a realistic projection of a potential 2020 budget shortfall considering that sales tax revenues are stronger than anticipated and that the casinos are now open?
g. What additional budget cuts can be promptly implemented to mitigate any projected budget shortfall?
Hopefully much of this information has already been presented to the council members during the several months that these measures have been considered. If so, they have not been shared with the general public.
It’s time to do so.