Skip to main content

User account menu

  • Log in
Shopping cart 0
Cart

Search

Search
Home The Northside Sun
  • Post
    • Leaderboard
    • Post Dashboard
    • Payment Settings
  • Home
    • Contact Us
    • FAQ
    • Monthly Website Statistics
    • Our History
    • Our Staff
    • Privacy Policy
    • Rack Locations
    • Submit News
    • Wedding Policy
  • Most Read
    • Most Read This Week
    • Most Read This Month
    • Most Read This Year
    • Most Read All Time
  • Most Recent
  • More News
    • Crime
    • Ridgeland Crime Map
    • Documents
    • Features
    • Politics
    • Public Notices
    • Videos
  • E-Editions
    • Archives
    • Newspaper E-Edition
    • Magazine E-Edition
    • Special Section E-Editions
  • Opinion
    • Columns
    • Comments
    • Editorials
    • Letters
    • Polls
    • Submit a Letter
  • Advertising
    • Ad Rates
    • Ad Staff
  • Calendar
  • Comics/Games
    • Cartoons
    • Comics
    • Crossword
    • Lexigo
    • Sudoku
  • Obituaries
    • Submit an Obituary
  • Social
    • Anniversaries/Birthdays
    • Engagements/Weddings
    • Schools
    • Submit an Anniversary
    • Submit a Birthday
    • Submit an Engagement
    • Submit School News
    • Submit a Wedding
  • Subscribe
  • State
    • Most Read - Statewide

Main navigation (mobile)

  • Post
    • Leaderboard
    • Post Dashboard
    • Payment Settings
  • Home
    • Contact Us
    • FAQ
    • Monthly Website Statistics
    • Our History
    • Our Staff
    • Privacy Policy
    • Rack Locations
    • Submit News
    • Wedding Policy
  • Most Read
  • Most Recent
  • More News
  • E-Editions
    • Archives
    • Newspaper E-Edition
    • Magazine E-Edition
    • Special Section E-Editions
  • Opinion
    • Columns
    • Comments
    • Editorials
    • Letters
    • Polls
    • Submit a Letter
  • Advertising
    • Ad Rates
    • Ad Staff
  • Calendar
  • Comics/Games
  • Obituaries
  • Social
    • Anniversaries/Birthdays
    • Engagements/Weddings
    • Schools
    • Submit an Anniversary
    • Submit a Birthday
    • Submit an Engagement
    • Submit School News
    • Submit a Wedding
  • Subscribe
  • State

Robert Blaine

Less Strain: City could save millions refinancing general obligation bonds

By Nell Luter Floyd , READ MORE > 1,842 Reads
On Thu, 01/21/2021 - 10:15 AM

The city of Jackson is refinancing $24 million in general obligation bonds in order to take advantage of historically low-interest rates.

The refinancing of general obligation bonds, which are municipal bonds backed solely by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project, is projected to save taxpayers about $10 million over three fiscal years, starting in fiscal year 2022.

The refinancing is good news for the city because it evens out its general obligation bond payments, which makes it easier to budget and doesn’t create a strain on the budget like what happens when a payment increases substantially, said Robert Blaine, Ph.D., chief administrative officer for the city of Jackson. (He will begin work on February 1 for the National League of Cities, the nation’s largest membership and advocacy organization for local elected officials, as the director of the league’s Institute for Youth, Education and Families.)

“It allows the city to be able to better manage its finances and to be able to plan, to do multi-year planning as far as the budget is concerned,” he said. “We’ll know where those funds will come from to make debt service and that will help take the strain out of our enterprise.”

The more than $3 million that the refinance will free up annually for fiscal years 2022-2024 would be helpful should the city face revenue shortfalls, Blaine said. 

“It doesn’t mean there’s extra money to do a lot of new things but in a situation where we would have to dig into the reserves, it gives the city more to meet its obligations,” he said.

The savings from the refinancing will go into the general fund. The dramatic drop in bond payments that was expected in fiscal year 2025 will not happen because of the refinancing. 

 Jackson has about $107.7 million in general obligation debt, of which $13.5 million is to be paid during the 2021 fiscal year. 

The city’s general obligation debt service has increased through the years from

See Refinancing Bonds, Page 9A

Continued from Page One

 $4.9 million in fiscal year 2016 to $13.4 million for fiscal year 2021.

Under the restructured plan, Jackson’s 2022 general obligation bond payment will be reduced from $13.5 million to $10.4 million. In 2023, the payment will drop from $13.6 million to $10.3 million, and in 2024, the payment will drop from $13.7 million to $9.9 million.

In 2025 and 2026, payments will stay in the $9 million range, dropping to just under $8.8 million in 2027 and $8.4 million in 2028.

Bond payments will dip below $8 million for the first time in 2029 when debt service that year will hit $7.9 million.

Jackson City Council member Virgi Lindsay, who represents Ward 7 and chairs the council’s finance committee, said the $3 million that will be added to the general operating budget for fiscal years 2022-2024 is good news when it comes to providing city services.

The city’s payments will be more manageable plus funds will be available that the city council and administration will determine the best way to use, she said. It all adds up to “better management of our resources,” she said.

The refinancing provided debt service relief, created a decreasing debt service structure and kept the maturity of the city’s general obligation bonds the same, she said. All of the city’s general obligation bonds mature by 2036. 

The city wanted to refinance the bonds about a year ago, but the onset of the coronavirus pandemic meant waiting until the market stabilized, she said. 

Lindsay praised Tim Howard, the city attorney, and others, including Stephen C. Edds, an attorney at Butler Snow, who handled details. Butler Snow served as bond counsel and Siebert Williams Shank & Co. served as bond underwriter.

“I’m grateful to the team that made this possible,” she said.

City Council member Ashby Foote, who represents Ward 7, agreed that the refinancing is “a good and smart thing to do at this time. It will help us a lot in the next three years.”

Foote said the refinancing will provide breathing room to deal with the city’s water/sewer billing situation. The city needs the additional cash as it continues to sort out problems in its water billing department. Because of complications with its billing system, the city is receiving about $2 million a month less than it should be collecting from monthly water/sewer bills.

Before the council voted to approve the bond refinancing, members discussed what should be done with the savings, naming increased constituent services as possibilities. Ideas ranged from paying off additional debt to Mayor Chokwe Antar Lumumba’s mention of facilities for youth.

 

‹ PreviousNext ›

Most Recent

Mission Mississippi - March 05, 2021 Livestream

The state-wide livestream for Mission Mississippi - March 05th, 2021

Wicker Rejects Effort to Weaken Election Integrity
Hyde-Smith Announces $6.99 Million Army Contract for UAS Work in Starkville
Treasurer McRae: Don’t Use Mississippi Money to Bailout Poorly Managed States
Commissioner Gipson Announces New Mississippi Agriculture Youth Council
Guest Highlights Effects of Biden Administration Border Decisions

Most Read News Article

  • Week
  • Month
  • Year
  • All Time

Etairos HVAC Merges with Delta Thermal Solutions

A merger of two privately held HVAC manufacturers’ representatives— Etairos HVAC and Delta Thermal… READ MORE

Michael Ramirez - February 28, 2021
City of Jackson Announces Vaccination Day on March 6
Jackson Mayor Extends Curfew Order for Minors Younger Than 18
Why teachers in Mississippi work second jobs to get by
Jackson Mayor Asks Governor for $47 Million to Repair Water System

Marshall Ramsey: Thank You

Medicaid. -- Cartoon by Marshall Ramsey, Mississippi Today - February 05, 2021 --

Honor Roll: St. Joseph Catholic
Archie Comics - February 07, 2021
Archie Comics - February 14, 2021
Archie Comics - February 21, 2021
License Reciprocity, Teacher Loan Repayment Focus of Two Education Bills Passed by Mississippi Senate

Governor Reeves explains "Safer at Home" policy

On his Facebook post, Gov. Tate Reeves explained that Mississippians are now "encouraged" but not "… READ MORE

Northsider Reed Hogan's over-the-counter Covid-19 treatment cuts death rate 25-40%
One world conspiracy
Ribbon Bullies, McCarthy, and Thinkists
Thanks COVID, now tailgating is canceled
Offers Solution: Northsiders form company to address business needs in time of coronavirus

Governor Reeves explains "Safer at Home" policy

On his Facebook post, Gov. Tate Reeves explained that Mississippians are now "encouraged" but not "… READ MORE

Northsider Reed Hogan's over-the-counter Covid-19 treatment cuts death rate 25-40%
Biggest injustice in college sports
One world conspiracy
Shellye Stanley McCarty
Rich retiring politicians

March 4, 2021

Sign Up for Notifications of Local Breaking News

Start E-mail NotificationsStop E-mail NotificationsStart Mobile NotificationsStop Mobile Notifications

Social

In Cleveland, parents fear the cost of losing pre-K programs

When it became clear that 384 students unenrolled from the public schools here and weren’t coming… READ MORE

Studying forces
Book Buddies
Media impact awards
Honor Roll: Mississippi State University
Most Versatile

Magazine block

Obituaries

Francis Julian Carroll, Jr.

Francis Julian Carroll, Jr. passed away peacefully at home on Wednesday, March 3, 2021. He was born… READ MORE

Dr. Thomas (Tom) George Coleman
Maxine Mable White
Daniel Stephen McNamara
Elizabeth (Betsy) Nelson Craft
Molloy Simpson (M. S.) Bennett

Opinion

Wicker Rejects Effort to Weaken Election Integrity

Below is a political opinion column from Senator Roger Wicker:

Treasurer McRae: Don’t Use Mississippi Money to Bailout Poorly Managed States
Opinion: Tax overhaul unlikely to fly
Opinion: State of the state is looking better
SALTER:China trade standoff resolution is critical for Mississippi farmers seeking vital markets
Opinion: David v. Goliath or greater fool?

Weddings & Engagements

Miss Parker and Fuggett to exchange wedding vows April 17 at Northminster

Mr. and Mrs. Guy M. Parker III announced the engagement of their daughter, Rebecca Blackmon Parker… READ MORE

Fuller and Rozier united in marriage July 24 in outdoor ceremony
Miss Cannon and Simmons to exchange wedding vows April 10 in Jackson
McPherson and Yerger wed November 7
Miss Montagnet and Franklin planning March 27 wedding at Covenant Presbyterian
Liston and Draughn exchange wedding vows October 10 at Fairview

newsworthy jan 7 2021  LIUL   Our Town 2020   What's Hot 2019   Gift Guide 2019    The Look Fall 2019  

Click here to read The Northside Sun Special Sections

COMPANY COMMUNITY ADVERTISE E-EDITIONS MORE NEWS
Contact Community Calendar Subscribe Magazine E-Edition Cartoons
FAQ/Help Obituaries Ad Rates Newspaper Archive Columns
Our History Engagements/Weddings Ad Staff Newspaper E-Edition Comics
Our Staff Most Read My Account Special Section Editorials
Statewide Most Recent Rack Locations   Features

Click on the city name to visit its website.

ACKERMAN  •  CARROLLTON  •  CHARLESTON  •  CLARKSDALE  •  COLUMBIA  •  DUMAS(Ark.)  •  EUPORA  •  FOREST  • 

FRANKLINTON(La.)  • GREENVILLE  •  GREENWOOD  •  GRENADA  •  HATTIESBURG  •  JACKSON  •  KOSCIUSKO  •  INDIANOLA  • 

LOUISVILLE  • MAGEE  • MENDENHALL  •  McCOMB  •  NEWTON  •  PETAL  •  QUITMAN  •  SENATOBIA  •  TALLULAH(La.)  •  WINONA  •  YAZOO CITY


Copyright 2020 - The Northside Sun | Privacy Statement | Help | Terms of Service

The Northside Sun - 246 Briarwood Dr.- Jackson, MS 39206 - (601)-957-1122

Emmerich Newspapers proud to serve your local communities.

Thank you for visiting our website.