ST. MARTINVILLE — The St. Martin Parish Council approved Tuesday publishing the details of the parish’s plan to issue up to $8.5 million in bonds.
Parish President Guy Cormier will borrow the money from the Louisiana Local Government and Environmental Facilities Authority through the issuance of bonds, according to the council’s plan.
The council also passed an ordinance that will allow Cormier to act on behalf of the council in signing necessary paperwork associated with the bond issuance.
There was no opposition to either proposal.
Councilman James Hebert was absent.
Bond attorney Scott Crawford, who is working with the parish on the bond issue, said that since being given permission to move forward on the project Aug. 3, he has made significant progress. Crawford said he should be able to provide the council with the bond interest rate information soon.
Even though he did not know how low the rates would be, Crawford said the council is in a position to be granted favorable terms.
“This parish is clearly careful with its money, and your financial situation is solid,” he said. “That will speak well for you, and I think you can achieve an ‘A’ (bond) rating, when it was a ‘Triple-B’ rating in the past.”
At the Aug. 4 meeting, Crawford said the interest rate on the bonds would not exceed 6 percent and the term would not be more than 25 years.
Cormier said at the August meeting that he was hoping for a rate closer to 4 percent, especially considering the current low national interest rates.
The money is slated to pay for road and bridge improvements as well as to benefit other capital improvements in the parish.