Refinancing of Young County loan interest rates has carried with it big savings in the past for taxpayers, and a new deal brokered between Specialized Public Finance Inc. and the Young County Commissioners Court will likely save the county roughly $200,000 up to the year 2023.
Last month, after a drawn out bidding war, the court agreed to a 2.25 percent interest rate for its transportation and equipment budget, down from over three percent and amounting to several thousand in savings.
Now, through the motion to refinance its 2006 certificates of obligation from 4-5 percent down to a maximum interest rate of 2.4 percent, Young County is looking at a prorated savings of about $3,500 in 2014. That goes up to about $20,000 in savings in 2015, and up again to roughly $23,000 in 2016.
Specialized Public Finance Managing Director Vince Viaille initially told the commissioners court that he could set a maximum interest rate of 2.65 percent. But then Commissioner Mike Sipes asked Viaille if that could go even lower to 2.4 percent. Viaille acquiesced, and shortly after the court voted unanimously to refinance its 2006 certificates with Specialized Public Finance until 2023.
During Viaille’s presentation before the court, Commissioner Stacey Rogers asked him if the low interest rates his company offered were realistic. Rogers’ question was in reference to Viaille’s assertion that the rates could go even lower, possibly down to 2.1 percent.
Read the entire story in Wednesday's Graham Leader.