- Associated Press - Thursday, June 5, 2014

BAY ST. LOUIS, Miss. (AP) - The city of Bay St. Louis is refinancing a local utility bond issue for five years.

The result to residents is a $9.81 a month increase.

“We still don’t know that the rate hike is sufficient to cover what we owe,” Councilwoman Wendy McDonald told The Sun Herald (https://bit.ly/1kAFPns ).

“We started this year in the hole and we aren’t doing anything until the end of this year again. You can blame us in office for not doing anything sooner,” she said.

The city council acted Wednesday. The bond restructure will carry 2.67 percent interest. At that rate, the city will pay $198,090 extra in interest and fees over the bond’s five-year life.

With the restructure, the first payment won’t be due until July 1, 2015.

City officials said they would have defaulted on a $426,715 payment due July 1 if the bond issue had not been restructured.

Mayor Les Fillingame wants the increase to appear as a separate line on utility bills, labeled as debt service. He also wants to put the debt-service money in a separate account beginning in July.

The council will vote June 17 on the addition to the utility bills.

___

Information from: The Sun Herald, https://www.sunherald.com

LOAD COMMENTS ()

 

Click to Read More

Click to Hide