The Marshall County Commissioners voted 2 to 1 on Monday to refund the Jail bonds to get a lower interest rate and save the county about $ 230,000 a year in interest.
Baker Tilly partner Todd Samuelson and municipal advisor Heidi Amspaugh discussed the 2014 lease rental bonds on the Marshall County Jail with the commissioners.
The 2014 bonds which are currently at 4% can’t be paid off until August of this year. Amspaugh said the county can refund the bonds to get a lower interest rate, projected to be 2% to 2.5%, and also release the Debt Service Reserve Funds of $1,113,000. It was noted that the 2014 bonds will be paid off in 2027 and the refunding would not extend those terms.
The jail bond refunding requires a joint resolution with the county commissioners and council. If that can happen by the April 11th meeting of the Council and the Marshall County Building Corporation members approve, the bonds could close in June.
Amspaugh showed the commissioner the annual savings which over the term of the bond, through February 2027 the county would save over $1.1 million.
County Commissioners Stan Klotz said, “I like zero percent and I know we have to wait until next year because of legislation we have. I understand that people are willing to look at it downstate because it is a budget year. If we get our legislation changed to where we can reestablish a rate. Zero percent is the best rate of all and it doesn’t cost us $160,000 to do that. So, my opinion, we need to pay it off. That’s what I’m sticking to. This is not a knock on the presentation you made. I just think the best thing is to pay it off.”
After continued discussion Commissioner Mike Burroughs made the motion to move forward with the jail bond refunding. Commissioners Kevin Overmyer seconded the motion, and the vote was 2 to 1 with Commissioner Klotz voting no.
Next Monday, April 11th the Marshall County Council will hear the same presentation and have to opportunity to ask questions. They too will vote on the possibility of refunding the current jail bonds to reduce the interest rate and save the county money.
Heidi Amspaugh said the Marshall County Building Corporation, which owns the jail will have to meet and support the refunding. She said if everything continues toward the refunding she will be back at the commissioner’s meeting on May 2nd and the council meeting on May 8th with a bond resolution to move forward.