Grundy County Commissioners Tuesday afternoon made official what had been announced last week – the refinancing of law enforcement center bonds in order to save money for the county on future interest expense.
The commission adopted a resolution and signed documents presented by representatives (Sam Woodring and Bruce Johnson) of the bond underwriter: LJ Hart and Company of St. Louis.
With lower interest rates in today’s market, Grundy County expects to save over 822 thousand dollars in future interest expenses over the remaining years of the bonds. The new long term average interest rate will be two point one five (2.15%) percent compared to the original certificates from 2006 which have had an interest rate of four point three seven (4.37%).
The principal amount remaining on the jail lease bonds is three point eight million dollars. Payments by Grundy County could extend to year 20-30 unless county officials decide in the future they have sufficient reserves to make earlier than scheduled payments. Lease refunding certificates in five thousand dollar denominations were placed locally with Edward Jones and Company and with Raymond James and
Associates. June 30th is the closing date for refinancing the construction bonds.
The cost of issuance was nearly 70 thousand dollars which is included in the refinancing plan developed by the LJ Hart Company. Included in that amount is twelve thousand dollars for Grundy County’s credit rating for bonds. Commissioners say another company quoted the cost of issuance at 100 thousand dollars.