County to Refinance Bonds and Save on Interest Costs

With interest rates at record lows, the Franklin County Board of Commissioners approved an ordinance to refinance bonds in the amount of $13,860,000. The refinance saves $381,000 in taxpayer dollars over the next two fiscal years.

“Our strong financial position continues to help us secure very competitive rates for capital projects and bond refinancing,” said Commissioner Chairman Dave Keller.

Last month, John Frey, Director at PFM Financial Advisors LLC, estimated a refinance rate to be around 1.7%. On Wednesday morning, he was pleased to report even lower bids from Chase Bank. “I think they like the name of Franklin County,” he said.

The County locked in a refinance rate of 0.75%. The 2013 and 2014 bonds to be consolidated and refinanced were at interest rates ranging between 2.0 and 2.5%. Both bonds are the result of refinancing older bonds used to build the Franklin County Jail, renovate the 9-1-1 facility, purchase the Department of Emergency Services radio system, and for agricultural preservation.

The final maturity date for these bonds remains April 1, 2024.

Closing is scheduled for September 8, 2020.

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