The Duncan Banner

Local News

October 11, 2012

Refinancing debt to save Duncan $1.3 million

DUNCAN — The members of the Duncan City Council and Public Utilities Authority reconvened Wednesday evening for a special meeting to discuss and approve action to refinance a bond and note which will allow an approximate $1.3 million in savings for the City of Duncan.

The intent is to consolidate existing debt, shorten time to maturity, reduce total payoff of debt and lower interest rate from two outstanding debts from previous city work.

The resolution would authorize the Public Utilities Authority to issue its utility system revenue note, to not exceed $7.4 million.

Representatives from The Public Finance Law Group PLLC were on hand to ensure any questions were answered in relation to the paperwork.

“Things have come together in a way that what was a good deal a year ago, is a really good transaction today,” attorney Allen Brooks said.

The purpose of the resolution is to refinance the Series 2002B Bonds from the sewer plant work in 2002 and the Series 2009B Note from the 2009 HoneyWell project, for the work the  company did to install automated meter reading systems, and to replace meters, lighting and billing software.

The principal balance outstanding for the sewer plant bonds, as of Oct. 1, was $3.58 million with the HoneyWell Project note balance at $3.99 million for a total of $7.57 million.

The new principal amount will be $7.39 million but with a fixed interest rate of 2.35 percent, the estimated gross debt service savings will be $1,287,266.48, after application of existing fund balances and payment of all costs of issuance.

The note for the HoneyWell Project had an interest rate of 5.15 percent with the sewer plant bonds having an 5.04 percent interest rate.

Handling the purchase of the note will be First United Bank and Trust Company out of Durant.

Attorney Nathan Ellis of The Public Finance Law Group said during the special meeting that three local banks were sought to handle the purchasing of the note but given the offer from First United Bank and Trust Company, chose to not pursue the transaction.

A resolution from the City Council was required to be approved, allowing the Public Utilities Authority to take the action of authorizing the utility system revenue note.

In approving both resolutions, the City Council members approved the first resolution then adjoined the special City Council meeting before reconvening in the special Public Utilities Authority meeting and approving the resolution to issue the note.

1
Text Only
Local News
  • City Council Water rationing specter suddenly produces a crowd

    The Duncan Council met again on Tuesday, as it does twice a month, but there was something different about the latest gathering -- there were more than a handful of people in the audience.

    July 23, 2014 1 Photo

  • Main Street Duncan receives praise, funding

    Civic leaders on Tuesday endorsed the role of Main Street Duncan in improving the city and urged the council to approve the annual $20,000 contribution it makes to the nonprofit organization.

    July 23, 2014

  • Marlow city council opens fourth firefighter position

    Jason McPherson, Marlow city administrator, announced Tuesday evening that the potential task force for the Marlow fire department did not come together as planned.

    July 23, 2014

  • Stephens County unemployment below the state average

    Oklahoma experienced one of the largest increases in employment in the country for the month of June. The state’s unemployment rate dropped to 4.5 percent, the lowest it has been in almost six years.

    July 23, 2014

  • Community Intervention Center faces budget cuts, layoffs

    While the Duncan Community Intervention Center faces a $126,476 budget reduction next year, it is only part of a $4,977,079 budget reduction by the Oklahoma Office of Juvenile Affairs.

    July 23, 2014

  • Library Teen Volunteers Library shows appreciation for teen volunteers

    To show her appreciation for her summer help, Duncan children’s librarian Darbie LaFontain headed a thank you party for the teen volunteers.

    July 23, 2014 1 Photo

  • School supplies to be given to Velma children

    Velma children may receive free school supplies thanks to the Velma Volunteer Fire Department and the Velma EMS.

    July 23, 2014

  • 7-22 mainstreet.jpg Most Main Street Duncan members haven’t paid dues

    The new executive director of Main Street Duncan has her work cut out for her.
    The nonprofit organization, designed to pump life into Duncan’s historic down, has collected only 40 percent of the dues it is owed for the past year, according to records.

    July 22, 2014 1 Photo

  • 7-22 CTHC Drawing Class2 0288.jpg Phillips leads creative process through Heritage Center art class

    Brenda Phillips took her art knowledge and applied it to two groups Monday.
    Phillips, an art teacher at Duncan High School, led a drawing class Monday at the Chisholm Trail Heritage Center, teaching two groups, youths and adults, the basics of drawing. Phillips will continue the two-day class today.

    July 22, 2014 2 Photos

  • 7-22 Douglass Pool2 0295.jpg Douglass Pool splash pad work underway

    Douglass Pool may be only about a month away from becoming a splash pad.
    On Monday, City of Duncan workers began breaking up the concrete making up the pool deck. Dana Stanley, parks and cemetery superintendent for the city, said he hopes the slash pad project will be completed by the end of August to allow it to be used before the season comes to an end.

    July 22, 2014 2 Photos