Bond refinancing for jail to save taxpayers over $200,000

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Refinancing of certificates used to pay for the law enforcement center will save Scurry County taxpayers more than $200,000 over the course of the next seven years, the Scurry County Commissioners’ Court learned today.

Commissioners heard the results of the refinancing from Vince Vialle, managing director of Specialized Public Finance, Inc., which oversaw the transaction.

Vialle said the refinancing, which was Thursday, will result in a total savings of $239,942 in debt service payments by the time the certificates are retired in 2024.

The refinanced certificates of obligation were sold to SAMCO Capital Markets, the lowest of nine bidders, which offered an interest rate of 1.85 percent, significantly lower than the interest rates of between 3.2 percent and 4.55 percent the county was paying on the 2009 certificates.

On average, the county will save slightly more than $33,000 each year, Vialle said.

“The reason we did this was to get a lower interest rate and to achieve a measure of debt service relief for the county,” he said. “This is very similar to someone refinancing their home loan.”

Vialle noted the refinancing covered the outstanding $3.7 million still owed on the 2009 certificates.

Scurry County Judge Ricky Fritz said that officials could not wait any longer to refinance the certificates.

“It looked like interest rates were starting to go back up again,” Fritz said. “So, if we were going to do it, now was the time.”

Vialle described the sale as very beneficial to the county.

“I don’t think we hit the absolute rock bottom in interest rates, but it was very close,” he said.

Commissioners also approved three hiring requests from county officials, green-lighting the posting of jobs for the Scurry County Health Unit, the Scurry County Boys and Girls Club and Pct. 4 Commissioner Jim Robinson.

The health unit opening is for a law enforcement center/epidemiology nurse, while Robinson is in need of a Tech 2 equipment operator. The Boys and Girls Club will post an opening for a part-time youth development worker.

In spite of a county hiring freeze approved late last year, commissioners agreed to the personnel requests without objections.

“We were asking (department heads) previously if they could wait and see if these positions were something they absolutely had to have,” Pct. 1 Commissioner Terry Williams said. “That was the only reason we asked people to wait on personnel requests.”

Two state grants totaling $18,000 also were accepted by commissioners. The first, for $12,000, will help the county recoup part of their expenses incurred with the home delivery of meals program, while the second grant will help the airport in recovering a portion of fuel and oil costs.

Two line-item transfers were approved by the board — $4,000 for the Pct. 3 road and bridge department from road material to equipment to replace a 40-year-old sprayer and $200 for the Scurry County Extension Office from office rent to part-time employee when the office’s secretary is on vacation.

A budget amendment of $3,544 was approved as certified revenue from an insurance claim. The county was repaid for repairs made after a vehicle hit a door at the Boys and Girls Club.

The court unanimously accepted the bid from McCormick Marketing for fuel, oil and grease and the bid from Ergon Asphalt for asphalt. Bids from R.E. James Co. and Loraine Quarry were both accepted for gravel.

Bids for scrap metal and iron were accepted from Snyder Iron and Metal.