Friday, September 24, 2021

Bond sales generate taxpayer savings

Photo by Bill Castleman
Photo by Bill Castleman

Lantana Fresh Water Supply District #7 board members have been working to save residents money by taking advantage of Lantana’s strong credit rating.

“Over the last two years the board has refinanced two bonds resulting in a savings of close to $2 million,” said David Ware, board president.

The board most recently approved the issuance of $11.2 million in municipal road bonds at its October meeting and saved $325,000 over the 11½ year term on the loan.

Since the credit rating increased two levels– from BBB- to A3– the district was able to lower the interest rate being paid by 25 basis points, according to Ware.

The district’s bond advisor is Dallas-based First Southwest Company, LLC, one of the country’s largest investment banks.

The process of issuing bonds to reimburse the developer after they build out the infrastructure in each of Lantana’s subdivisions is highly regulated by the Texas Commission on Environmental Quality and the Texas Attorney General.

Lantana’s two fresh water supply district boards work with district staff to make key decisions regarding operations, including overseeing utility rates, building and maintaining roads, sidewalks and other infrastructure, issuing and paying off municipal bonds, and setting the property tax rate.

Meetings are held monthly at the districts’ office in Bartonville Town Center.

CTG Staff
The Cross Timbers Gazette News Department

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