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Archive for Friday, May 4, 2012

Douglas County takes advantage of low interest rates to save up to $940,000

May 4, 2012

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Historic low interest rates have resulted in $940,000 worth of savings for Douglas County.

This week, the Douglas County Commission approved refinancing bonds that are paying off the Douglas County Jail and projects in special assessment districts.

Over the past few years, the county has kept an eye on dropping interest rates, but refinancing the bonds hadn’t made financial sense until now, according to Sarah Plinsky, assistant county administrator. And, the county decided that rates were so good that they should refinance now instead of waiting to package the bonds with upcoming projects that would require issuing debt.

“We are really trying to move fast to take advantage of the savings,” Plinsky said.

The interest rates are on four bonds, one of which won’t be paid off until 2021. In the next nine years, the lower interest rates will save the county more than $940,00. This year alone, the county expects to pay $90,000 less in interest because of the refinancing.

The savings frees up sales tax authority money that could be used for other projects. Right now, the county is faced with having to replace the radio system that is the backbone for 911 calls. Upgrading the system will cost about $7 million.

“(The refinancing) makes it easier for us to make it happen,” Plinsky said.

Comments

oneeye_wilbur 1 year, 11 months ago

Thanks Jack McKee...they aint' saving diddly squat.

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JackMcKee 1 year, 11 months ago

"saving money". Wrong. Lawrence is paying interest on things it doesn't really need like $18 million "library" expansions. It's like your wife telling you how she saved you hundreds by buying her high heels on sale.

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Richard Payton 1 year, 11 months ago

Is this what we call county panhandling?

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Gotland 1 year, 11 months ago

Ideally, governments would not take on any debt. It is how banks enslave the people, even the people who handle their personal finance well.

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none2 1 year, 11 months ago

They could have saved even more money if they spent money wisely. Don't forget thanks to this county government, they own land out by the county jail that was purchased for over $30,000 per acre. Maybe they planned on mining gold there. I hope so to justify that extravagance.

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Cant_have_it_both_ways 1 year, 11 months ago

Some people grow up and have something, the others demand income redistribution.

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Jimo 1 year, 11 months ago

Gee, I wonder why someone doesn't propose that we finance hundreds of billions of dollars to replace and repair aging infrastructure in this country while the U.S. can borrow at a real interest rate of almost 0%, rather than to wait until roads buckle, bridges collapse, and economic productivity declines and that money has to be financed at significantly higher rates.

Oh wait, President Obama did propose that the Republican Congress do this!

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Cant_have_it_both_ways 1 year, 11 months ago

We should not be borrowing money to begin with. Everyone should live within their means with a very few exceptions. Imagine how much 90K per year, plus the actual interest they are paying would do to enhance the city. Of course, when you are spending the money someone else has worked for, there is a very good chance you won't spend it wisely.

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Shane Garrett 1 year, 11 months ago

Wow, I want the radio system replacement contract.

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Keith Richards 1 year, 11 months ago

What was the upfront fee for refinancing? Typically on a house it is about 1%

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