Barnesville council approves refunding of 2011 water-and-sewer bonds, officials cite multi‑million savings
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Summary
The City of Barnesville adopted a supplemental bond resolution in late September–October to refinance its 2011 water-and-sewer revenue bonds; advisors and the underwriter said the refunding preserves an A rating and will reduce debt service by millions over upcoming decades.
The Barnesville City Council voted unanimously to authorize a refunding of its Water and Sewer Revenue and Improvement Series 2011 bonds, approving a supplemental bond resolution and forward-delivery agreements to issue Series 2021 refunding bonds.
City financial adviser Tony King of Crews & Associates told the council the transaction maintained a Standard & Poor’s A rating with a stable outlook and described that result as “not a small feat,” citing the City’s financial performance during the pandemic. At a later pricing presentation, Bill Johnston of Stephens, Inc., the underwriter, reported that roughly 90% of the bonds were sold and estimated the transaction would generate multimillion‑dollar present‑value savings for the city.
City Manager David K. Rose identified the refunding principal amount as $4.6 million during discussion; advisors offered differing savings estimates on the record: King earlier referenced a $4.2 million savings figure, while the underwriter cited an estimated $5.7 million in savings over the life of the refinanced debt. All figures were presented to the council as advisor estimates.
Why it matters: refinancing at lower market rates reduces the city’s debt service burden on its water and sewer utilities, freeing future operating funds and reducing long‑term interest costs. Council members and staff said preserving the City’s credit rating was an important factor in achieving favorable pricing.
How the council acted: on September 29 (first reading) and at a subsequent special session in late October, the council adopted the ordinance and supplemental resolution authorizing the refunding and forward delivery. Council members present voted unanimously to adopt the bond actions and authorize officials to complete the pricing and closing arrangements.
What’s next: staff and the City’s financial and legal teams will finalize documents and proceed to closing under the terms approved by the council.
Quote: “This is not a small feat and is a testament to the council and staff,” King told the council, noting the sustained rating and favorable market reception.