Low interest rates on bonds mean savings
and widening 11th Street, plus related improvements. The vote was 6-0 with Councilman Charles Bujan absent.
One of eight bidders, the Morgan Keegan-American Bank tandem offered an interest rate of 1.829 percent on the 15-year bond.
Mark M. McLiney, senior vice president of public finance with Southwest Securities, told the council that it was the lowest rate on a long-term bond he had seen in the 20 years he has been in the business. Southwest Securities is the city’s financial advisor.
Around the time of the election, Southwest Securities conservatively projected that the interest rate might end up being about 4 percent by the time the bonds were sold.
Getting the 1.829 percent rate instead of 4 percent means a savings of about $1.1 million, according to Darla Honea, the city’s finance director.
Eleventh Street is nearly two miles long, and plans are to rip it completely out, rebuild it all and add a center turn lane. A sidewalk will be added on one side of the street, and a concrete hikeand bike trail will be put on the other side.
New water and gas lines are being installed as part of the project. Work began on Feb. 3 and is expected to last for more than a year.
Questions? Comments? Contact Dan Parker at (361) 749- 5131 or email@example.com.