A refinancing plan that had been expected to save Douglas County taxpayers nearly $500,000 is being put off for up to three months after market forces slashed its potential savings.

County commissioners agreed Wednesday to delay refinancing $14.6 million in county debt. The plan, endorsed by commissioners Aug. 19, had been expected to cut $495,500 in interest costs during the next 10 years.

But as the county’s financial consultants drew up paperwork for selling new refinancing bonds documents that were scheduled for approval Wednesday night interest rates on short-term debt continued to sink, while rates on long-term debt held steady.

The growing difference between the rates ate into the county’s potential savings so that a sale of the bonds this morning would be expected to save the county only $200,000.

That’s not enough to make it worthwhile, said Craig Weinaug, county administrator. He asked commissioners for permission to wait up to three months to sell the bonds, in hopes that short-term rates would inch upward once again.

If the rates increase enough to save the county at least $300,000, commissioners said, it’s time to refinance.

“We’re banking on the possibility that the numbers will get back (up),” said Commissioner Charles Jones, who noted that economic conditions might not improve. “I’m worried that we’ll miss the opportunity altogether.”

Weinaug said the plan approved Aug. 19 carried a number of assumptions, particularly involving the status of interest rates.

Officials expected long-term rates to remain at near 40-year lows, allowing the county to refinance debt on major projects such as the Douglas County Jail and Community Health Building at a lower cost.

But officials didn’t expect rates on short-term debt to continue their slide. To refinance, the county would have to buy short-term, guaranteed government securities to cover their existing debts; at the low rates, the county wouldn’t earn as much on its money as anticipated, thus cutting into the expected savings.

“Sometimes you guess right, and sometimes you guess wrong,” Weinaug said.

Commissioners authorized Weinaug to work with financial consultants to sell bonds once the potential savings increases, provided that comes in the next three months.