Remember that bond financing deal for Hinds County we discussed a few days ago and the ruckus between Peggy & George over hiring a financial adviser? Supervisor Hobson-Calhoun sought to hire a financial adviser to restructure and refinance $50 million of bonds to help fund the Byram-Clinton corridor project. Well, posted below are some of the details of the proposed deal. Go to page 6. The savings column.
Once again, financial advisers recommend doing a deal that will bring in millions of dollars to Hinds County - in the near future. Just one problem: The deal will cost $5.4 million after the bonds expire. The deal will pay Hinds County $1.8 million in 2013 and $2.0 million in 2014 and $2.0 million again in 2015. Hinds County then has to pay $292,000 a year for twelve years. Hinds pays $3.0 million in 2028, $1.15 million in 2029, $3.1 million in 2030, and $550,000 in 2031.
HOWEVER, the net present value savings are $1.0 million. Standard cash flow analysis states if the net present value is above zero, then the project should be accepted. Tony Stovall of Rice Financial Products made this point in the video below when Supervisor Phil Fisher brought up the $5.4 million cost.
27:00 in this video:
and the beginning of this clip: