Supervisors consider restructuring bonds

By Amanda McBride The Choctaw Plaindealer

The Choctaw County Board of Supervisors may restructure the current $13 million bonds for a lower interest rate and savings. The supervisors sold the $13 million bonds over a year ago to build the new hospital and medical office building.

In the December 28 board meeting, Peyton Prospere, county bond attorney with Watkins and Eager Law Firm, discussed opportunities with the hospital bonds to “maybe help the county to lighten the load and smooth out the maturity schedule.” With that Prospere means to reduce the payment schedule of the bonds.

He introduced EJ Gregory, senior VP, and Buddy Crihfield, managing director, both of the Southeast Region of Duncan Williams Investment Bankers. Crihfield said he and Gregory propose to restructure the outstanding bonds by reducing the interest rate that would lower the payments and keep the county from having to come up with the 2014 payments of more than $1 million. He also said they propose to move the county’s rating from Moody’s ……. from BAA to A. Crihfield said there would not be any legal fees from him and Gregory if they cannot do what they propose to do.

District 3 Supervisor Chris McIntire, also board president, said that state statute requires at least a two percent net savings to be able to restructure the bonds. Prospere added that the restructuring could probably be done within a 30 day time period from the day the supervisors approve the resolution to the day the bonds are sold.

After questions from the board, Prospere said he and the representatives from Duncan Williams would send more information about the possible bond restructuring and the amount of projected legal fees to the board next week to consider.

The board may discuss this or take action on the possibility of restructuring the hospital bonds in their January 7 meeting. No action was taken during this meeting.

The Board of Supervisors also approved: -Agenda after adding budget discussions to the agenda. -Interfund transfer of $15,000 to Fund 097 and to transfer $32,915 from Fund 001 General Fund to Fund 126 Emergency Services. -Inventory deletion of an inoperable computer. -Payment requests from Pryor and Morrow Engineering for $38,344.15, after deductions for Amerson Roofing on the roofing project on the current hospital. The request will be sent to the state for payment. -Payment requests from Pryor and Morrow Engineering for architect fees for $3,602.63 on the new medical office building and $14,719.54 on the new hospital that is under construction. The requests will be sent to the bond agent for payment out of the county’s bonds. -Payment requests for Johnson Construction for payment #10 of $180,452 on the now complete medical office building and $883,021.20 on the new hospital that is under construction. The requests will be sent to the bond agent for payment out of the county’s bonds. -Solid Waste postage request for a maximum of $615 and the deletions/ assessments list. -Payroll. -A subcontract request on guard rail installation on the Pigeon Roost Project. -Postage requests from Lori Kerr, tax assessor/collector for tag renewals and mobile home tax cards. -To take under advisement, by recommendation from the tax assessor, the three bids submitted for aerial photography of Choctaw County. She suggested receiving a recommendation from Tri-State, who does the county’s aerial photography, before approving a bid.

The next Choctaw County Board of Supervisors meeting will be Monday, January 7 at 9 a.m. at the board room at the Choctaw County Courthouse.