The Douglas County Board set the stage for savings Thursday, May 16.
The Board set the parameters for refinancing two bond issues, one for $4.7 million issued in 2010 and one for refunding $7.6 million for a State Trust Fund loan. The move authorizes County Board Chairman Mark Liebaert, County Administrator Ann Doucette and Finance Director Candy Holm-Anderson to sign off on the sale of refunding bonds if interest rates meet savings and interest rate goals of the sale.
"This is a nice way to do this for refinancings because it allows (the Board) the flexibility to lock in interest rates between board meetings, when the county's ready to lock in interest rates," said Justin Fischer, senior vice president with Baird Public Finance. "If the market is strong and the savings are there, this would give these individuals the authority to sign off on the bond sale and the closing would occur in June or July depending on locking interest rates."
In both cases, the refunding would save the county a minimum of $75,000 in interest on each of the loans. Fischer said with the anticipated 1 percentage point drop on the $4.7 million bond, the savings could be as high as $86,231, and the county could save more than $124,000 with the anticipated half percentage point on the state loan.
Supervisor Keith Allen questioned what the company would be paid for the bond sale and whether that cost was taken into consideration when determining what the county would save.
Fischer said the cost for the refinancing, which includes less than $100,000 his company will earn for underwriting and advising the county. That was factored into the county's overall savings, he said.
The Board voted unanimously to refund the bonds by roll call with 18 members present.
"I just want to say thank you for bringing this forward, and giving us that opportunity for savings," Supervisor Alan Jaques said. "We appreciate that."