Kennedy Says Interest Rates Conducive to Borrowing

BATON ROUGE, LA – Louisiana will benefit from $517 million in loans and bond issues approved at the March 18 meeting of the State Bond Commission, according to State Treasurer John Kennedy.

Interest rates today continue to be conducive to borrowing, so that’s one reason we are seeing a steady amount of loans and bond sales by local governments, said Treasurer Kennedy. It doesn’t look like rates will rise anytime soon, so this type of growth and development in our state should continue over the next few months.

The Bond Commission approved:

Central Louisiana

A $250,000 loan for the town of Glenmora in Rapides Parish to pay contractual obligations.
$5.8 million in bonds for the city of Alexandria to refinance debt, saving $208,059.
$232,000 in bonds for the town of Glenmora to refinance debt, saving $14,076.
A $650,000 bond issue for the Rapides Parish Police Jury to refinance debt, saving $71,979.

Baton Rouge Area

A $10 million loan and $15 million bond issue for the Baton Rouge Metropolitan Airport for renovations to facilities. The bond issue will also reduce debt service by $134,870.
A $1.6 million loan for the city of Bogalusa in Washington Parish to fund operations.
$525,000 in bonds for Ascension Parish for waterworks improvements and replacements.
$30 million in bonds for the Metro Council of East Baton Rouge Parish to refinance debt, saving taxpayers $1,269,080.
$25 million in bonds for the East Baton Rouge Sewerage Commission for improvements.
An $820,000 bond issue for the West Feliciana Parish Police Jury to refinance debt, saving $29,511.
$100 million in bonds for the East Baton Rouge Mortgage Finance Authority for mortgage loans on single-family dwellings.
$15 million in bonds to finance medical and research equipment and facilities for the Biomedical Research Foundation in Baton Rouge and Shreveport.

Southwest Louisiana and Acadiana

$200 million in bonds (preliminary approval) for the city of Lafayette to make improvements to the city’s waterworks, electric power and light and sewer systems.
$445,000 in bonds (preliminary approval) for the village of Pine Prairie in Evangeline Parish to make sewerage system improvements.
$1.5 million in bonds for the town of Vinton in Calcasieu Parish to design, construct and equip a new city hall.

Northeast Louisiana

A $2.5 million loan for Morehouse Parish Hospital to pay expenses.
A $175,000 loan for the Morehouse Parish School Board for improvements to public elementary and secondary schools.
$5.7 million in loans for the city of Monroe to pay expenses and reduce debt service payments by $949,000 over the next two years.
An $865,000 loan for the town of Delhi to refinance debt, saving $42,967.

New Orleans Area

A $7.5 million loan for the Jefferson Parish Council to purchase public buildings and land.
A $4.1 million loan for the city of New Orleans to purchase vehicles for the city.
$4 million in bonds for the Louisiana Housing Finance Agency to rehabilitate the Palmetto Apartments in New Orleans.

Northwest Louisiana

$11 million in bonds for the city of Shreveport to refinance debt, saving area taxpayers $324,216.
$53.5 million in bonds for the DeSoto Parish Police Jury to refinance debt to fund the Southwestern Electric Power Company Project.
$2.6 million in bonds for the Webster Parish School Board to refinance debt, saving taxpayers $112,038.
$15 million in bonds to finance medical and research equipment and facilities for the Biomedical Research Foundation in Baton Rouge and Shreveport.

These projects will improve and expand infrastructure in our state, which is very important, but so is saving money, said Treasurer Kennedy. Refinancing a bond issue is one way we can reduce interest costs, and we are saving taxpayers nearly $9 million statewide as a result. A refinanced bond issue is very similar to a refinanced home mortgage. It can free up money each month or shorten the amount of time it takes to pay off your debt.

The Bond Commission also approved $18 million in bonds for the Louisiana Housing Finance Agency to refinance the debt of assisted living facilities in five Louisiana parishes. The resulting savings will be $5.5 million. For more information, or to download a State Bond Commission meeting agenda, visit www.latreasury.com.

Contact:
Sarah Mulhearn
(225) 342-0012