Columbus City Leaders Approve Interest Rate On “GO” Bond

COLUMBUS, Miss. (WCBI)- During its meeting on Tuesday, the Columbus City Council approved a 3.4% interest rate on a bond to help clean up damage from February storms.

It was just over two weeks ago with the city leaders agreed to take out a general obligation bond to help with clean up efforts.

The board accepted the bid from Trustmark National Bank.

The city can take out up to $5 million on the bond.

Mayor Robert Smith said they don’t have to use the entire $5 million dollars and won’t be charged for what they don’t use.

The damage assessment from the storms exceed just over 9 million dollars.

Smith said he hopes the bond will help bridge the gap while the city continues to wait to receive money from FEMA.

“Assessments that were done was $9.3 million,” said Mayor Smith. “FEMA accepted that and MEMA accepted that, but we think that with the $5 million that will be enough to take care of what needs to be done. If you think about it, FEMA only approved public assistance and not individual assistance. This is where we will pay for the damages to streets, from the flooding, from the tornado, any damage that was done there.”

Mayor Smith said the city won’t have to begin paying on the interest rate until December 2020, and won’t have to pay back the total amount for the general obligation bond until 2026.