St. Louis Comptroller Darlene Green was stunned today when Mayor Lyda Krewson and Board of Aldermen President Lewis Reed blocked a vote on refunding St. Louis Lambert International Airport bonds, issued in 2009, that will save taxpayers in excess of $20 million.
“It is fiscally irresponsible for Krewson and Reed to attempt to derail a financial transaction that will produce a savings in excess of $20 million dollars,” said Comptroller Green.
Refunding the 2009 bonds, which were issued at a rate of 5 percent, will leverage favorable market conditions with rates now less than 3 percent. That puts in excess of $20 million back into the airport’s coffers that otherwise would go to pay off debt. The savings would allow the airport to become more competitive and reduce airline costs.
Mayor Krewson and Board President Reed blocked the measure’s passage, despite the obvious advantages to pursuing refunding.