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Commission reviews cost-of-issuance reports for 19 transactions; several issuers reported higher-than-expected fees
Summary
The State Bond Commission reviewed cost-of-issuance reporting for 19 prior transactions (items 49'67). Staff summarized fee adjustments and under/overestimates for multiple issuers, including Opelousas, Ruston, Lake Charles Harbor & Terminal District and a $1.3 billion LPFA public-private partnership transaction.
At its Feb. 20 meeting the State Bond Commission reviewed the monthly cost-of-issuance report covering items 49 through 67. Staff said no motion was required for the reporting items.
Staff summarized adjustments for 19 transactions, citing added or higher-than-anticipated fees and net reductions in some cases. Examples in the staff summary included:
- City of Opelousas: Issued $25,000,000 in bonds; an additional $500 recording fee was omitted from the original submission. - City of Ruston: Issued $15,000,000 for Interstate 20 economic development area; an increase of $201,641 for bond insurance over the original submission, with a net reduction of fees overall of $17.41 (as stated). - St. Tammany Parish Recreation District No. 14: Issued $7,600,000 in bonds; an added $2,500 rating-agency fee was higher than estimated. - Greater Ouachita Water Company: Issued $20,500,000 in waterworks and sewer revenue bonds; an added $10,000 issuer-counsel fee was omitted from the original application, with staff reporting a total reduction of fees of $492,000. - LPFA I-ten Calcutta River Bridge public-private partnership: Issued over $1.3 billion in bonds in August (shown as 'one thousand three hundred million' in the packet); staff listed multiple added fees and adjustments, including escrow agent, GIC broker fee, communications consultant, DTC and beneficiary counsel fees, and a net reduction from original approval to actual of $4,500,000 (as stated in packet).
Staff walked through the remainder of the items with line-by-line changes to issuer-reported costs and noted there was no motion required. The commission proceeded to the next agenda item.
