DALLAS Louisiana local governments in five parishes will cut their debt service costs by $898,000 with refundings of existing debt approved by the State Bond Commission.
The commission also agreed to more than $145 million of new debt for a variety of projects at the Aug. 15 meeting, said Treasurer John Kennedy.
“The Bond Commission approved bonds to finance new roads in Zachary, make homeownership affordable statewide, pay for hospital renovations in southeast Louisiana, and finance infrastructure and capital improvement projects across the state,” Kennedy said.
The lion’s share of the refunding savings would come from the largest refunding on the agenda. The $6.4 million hospital revenue bond issue by Calcasieu Parish Public Trust Authority is expected to realize $426,000 of savings.
Louisiana Housing Corp. will sell $50 million of single-family mortgage revenue bonds in a volume cap issue. Proceeds will be fund mortgage loans for first-time buyers.
Other approvals included $25 million of bonds for cancer treatment facilities at clinics in three parishes and $20 million of bonds for a charter school in Lake Charles.
The bond panel also approved an increase in the line of credit to $125 million from $75 million for Louisiana Citizens Property Insurance Corp.
In March the Bond Commission rejected a proposal by the state’s insurer of last resort for a $100 million bond issue to cover a cash shortfall.
Officials from Citizens Property said last week the higher line of credit would be tapped only if the state suffers two large hurricanes in a single season.