Denham Springs — Denham Springs could save a substantial amount of money by refinancing millions of dollars in bonds in the coming months.
Last week, the City Council introduced an ordinance to explore its options. In 2008, the council issued $9.1 million in bonds to pay for modifications and upgrades to the city wastewater treatment facility. It’s paid off some of the money, but about $8 million is still outstanding.
During the council’s last meeting, attorney Carmen Lavergne told council members they could save money by reissuing the bonds.
It’s unclear exactly how much money a refinancing will be worth. Mayor Gerard Landry said the market changes hour to hour, but he expects the city will save hundreds of thousands of dollars.
The council will vote whether to approve the refinancing at its next meeting, and, should it pass, the bonds can be priced in December and close in January, Lavergne said.
If, contrary to expectations, the refinancing is more expensive, regulations prohibit the city from moving forward.
“You do, in fact, have to save money,” Lavergne said.
The public may comment on the city’s plan before the matter goes up for vote at the City Council meeting at 6 p.m. Nov. 23 in the Denham Springs Municipal Building on Government Drive.
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