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Council hears plan to refinance $8.14 million in 2018 bonds; staff to bring authorization later
Summary
Financial advisors outlined a plan to refinance about $8.14 million of 2018 general‑obligation bonds, projecting roughly $522,500 in gross savings over the next seven years if market conditions hold; council will consider bond authorization resolutions at a subsequent meeting.
Financial adviser Andy Campbell of Benzinski and Company presented a proposal to refund the City of Jackson’s 2018 capital improvement bonds on Tuesday and estimated meaningful budgetary savings if market rates remain favorable.
Campbell told the council the bonds to be refinanced total about $8.14 million for maturities 2027 through 2033 and said the estimated refunding interest rate would be roughly 3 percent if the city prices in March. That estimate produced a conservative gross savings estimate after costs of $522,501 and an average annual budget cash‑flow reduction of about $74,000, he said. "We are anticipating to save a good chunk of money for the city on this refinancing," Campbell said.
Campbell described the main risks: incurring rating and issuance costs before the market price date (rating fees around $20,000) and the possibility that interest rates move up before pricing. He recommended delaying costs until savings were clear and said council would be asked to approve a bond‑authorizing resolution at a future meeting, subject to parameters described in the presentation.
Council members asked procedural and risk‑management questions; no action was taken Tuesday. Bond counsel and staff will prepare materials and proposed resolutions for council consideration in the coming weeks.
