Heidi Amspaugh and Todd Samuelson from Baker Tilly presented information to the Marshall County Commissioners Monday morning concerning the 2014 lease rental bonds for the Marshall County Jail project.
Amspaugh explained the current options on what can be done with those bonds.
“They are not callable, meaning they can’t be paid off until August 1st of this year,” said Amspaugh. “A current refunding allows you to issue bonds 90 days in advance of that to actually pay off the bonds, and/or refund the bonds for a lower interest rate, or various other items that you’re allowed to do like releasing of the Debt Service Reserve Fund.”
The release of the Debt Service Reserve Fund would help pay down the bonds if the bonds are refunded.
She did suggest that the county not extend the terms of the bond.
The bonds would close in the beginning of June if the Marshall County Commissioners, Marshall County Council and the Marshall County Building Corporation members approve the process.
Amspaugh said if the bonds were refunded, the county would see a lower interest rate and save about $316,000 in interest. The Principal outstanding would be $4,175,000 and the annual payment would drop $236,000 a year through the rest of the term through 2027.
Commissioner Stan Klotz commented that he thought that the bonds should be paid off next year to save the county money. He also wants to wait to see if legislation would allow the Jail LIT Fund rate extended.
Klotz stated, “We’re sitting on $9 million in the LIT fund. Frankly, the longer we wait the more inflation is going to eat it up. So, to me it makes sense to pay it off and have it paid for and move on.”
However, Commissioner Michael Burroughs made a motion to refund the bonds.
“I just think it makes a lot of sense to our community and to our taxpayers to help our cash flow on a monthly basis moving forward,” said Burroughs.
Commission President Kevin Overmyer seconded the motion. Burroughs and Overmyer voted in favor of the motion while Klotz opposed the motion.
Heidi Amspaugh stated that the same presentation will be given to the Marshall County Council members during their meeting April 11. The Marshall County Building Corporation will also need to meet. If all moves forward, a bond resolution would be presented to the commissioners May 2 and to the council May 9 for approval.
