The Leitchfield Utilities Commission will again pursue a reduced debt service on the 1995 revenue bonds.
During the Thursday, May 1 Utilities Commission meeting, Utilities Chairman Robert Crawford said, given the current market, significant debt service savings could be achieved by refinancing through refunding part or all of the City of Leitchfield Combined Utilities System Revenue Bonds, Series 1995, dated January 9, 1997.
The Series 1995 loan was issued in the principal amount of $2,880,000.
According to Crawford, the loan bonds could be issued without insurance for savings of $96,000 or with insurance for savings of $118,600.
Given the significant savings increase that can be received by issuing the bonds with insurance, Crawford recommended that the Utilities Commission adopt a resolution requesting the City of Leitchfield to refinance the 1995 bonds to be re-issued with insurance.
Crawford said no new money will be borrowed; the City will only pursue refunding an existing debt.
The Utilities Commission passed a motion to approve the aforementioned resolution.
The resolution will be presented to the Leitchfield City Council later this month, after which time, if it is approved, the Rubin and Hays law firm will prepare a new bond ordinance, Crawford said.
The Utilities Commission had previously adopted a resolution on May 2, 2013 that would request the City of Leitchfield to authorize the refunding of the 1995 loan bonds; however, shortly after that date, market conditions changed, resulting in the loss of savings.
In other business:
*The Utilities Commission approved the purchase of a new server to replace five-years-old software.
The replacement server will cost approximately $19,786, which will be divided between the City of Leitchfield and Utilities, Crawford said.
Utilities will pay $15,786 up front, and the City will pay the remaining $4,000 over a five-year period.
*Utilities Superintendent Kevin Pharis reported that the recently purchased John Deere Gator UTV arrived with a transmission problem.
The transmission will likely be replaced, he said.
*The Utilities Commission approved the third quarter fiscal year 2013-2014 budget report.