Sewer-bond refinance vote set by LR board

The Little Rock Board of Directors agreed Tuesday to vote next week on allowing six Little Rock Wastewater bonds to be refinanced — a move the sewer utility’s chief executive says will lessen the blow of future sewer rate increases.

If Little Rock Wastewater is allowed to refinance the bonds, it would reduce the utility’s payout on the debts by an average of about $500,000 each year.

The payoff dates — which range from 2019 through 2037 — wouldn’t change, but during that time span the utility would save $12.1 million.

Wastewater’s Finance Director Debbie Williams has said now “is the right time” to refinance the loans because interest rate averages have almost reached historic lows.

Right now, the rates on the sewer bonds range from 3.24 percent to 4.91 percent. The refinancing would reduce that to 1.49 percent to 3.71 percent.

“This saves the ratepayers millions [of dollars] and is something we are very supportive of,” Ward 5 City Director Lance Hines said. He serves as a liaison between the city board and governing committee of Little Rock Wastewater.

The utility currently owes $163.7 million on the bonds, but the refinancing would reduce that to $150.5 million.

“This is a good thing,” Mayor Mark Stodola said. “And you know it’s certainly going to go to the benefit of the ratepayers.”

Since the utility’s former Chief Executive Officer Reggie Corbitt was fired last year, sewer officials made adjustments that resulted in not asking the city board last year to approve a series of rate increases that Corbitt had planned.

The administration, now under the leadership of Greg Ramon, who relocated from Arizona to take the head job, has been searching for ways to reduce any necessary future rate increases. Ramon said the utility will be releasing the results of its ongoing rate study by the end of May.