May 3, 2012
Debt Refinancing Will Save Rural Water District $379,734
Securing lower interest rates for a portion of the service's long-term date is going to result in significant savings for the Consolidated Water Supply District No. 1 of Scotland County. On April 19, the rural water district's governing board announced the move to refinance a portion of the district's bond debt to lock in lower interest rates. The move involves bonds issued when the district was formed in 1982, as well as bonds issued in 1991 to fund water system improvements throughout the district.
Approximately $920,000 worth of bonds were refinanced by the move, producing an overall savings of $379,734.32 according to board president Dorsey Swearingen.
The board worked with Steve Goehl of D.A. Davidson & Company. The Kansas City financing company guided the district through the refinancing process. Goehl noted that due to the district's sound management and strength of finances, more favorable interest rates were able to be secured.
The savings created by the financing change will allow the district greater financial flexibility to maintain the rural water system, continuing to provide safe drinking water for its patrons while continuing to abide by all of the Missouri Department of Natural Resources guidelines while possibly opening the door for capital improvements.
The water district, headquartered in Memphis, currently provides water service to more than 1,300 customers in Scotland County.
Members of the governing board are Swearingen, Larry Gieseke, Robert Moseley and Kenny Eggleston, with the fifth seat currently vacant.