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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

Shane Garrett 2 years, 7 months ago

Wow, I want the radio system replacement contract.

Cant_have_it_both_ways 2 years, 7 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.

MartyT 2 years, 7 months ago

Debt is the primary catalyst of public and private economic development. Virtually all governments, businesses, and private individuals use debt to finance investments that create an economic return where none would otherwise exist. Yes, the city has to pay interest on its debts, but the net monetized return on its debt-financed investments, holistically considered, will be positive. It's called...investment. Positive net return on capital. Simple. Economics 001. You would otherwise have no roads, utilities infrastructure, city services and amenities, all of which attract employers.

So, if you don't want to complain about the government spending your taxes wastefully, then just vote some people in that will eliminate the use of debt to finance local government, then you won't have any taxes to pay... because you'll likely become unemployed.

Did ya'll also hear, the Earth is round and orbits around the Sun???

Jimo 2 years, 7 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!

Cant_have_it_both_ways 2 years, 7 months ago

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

JayhawksandHerd 2 years, 7 months ago

It's amazing that those who complain the loudest have so much time available to post here. You would think they'd be too busy working to do so.

Jimo 2 years, 7 months ago

Ideally, government would set money aside for expenses during periods of high economic growth and high tax revenues.

Of course, the GOP would immediately point to the surplus balances and demand an immediate tax cut for the Koch Bros. "Returning your money to you" (Even if you don't see a dime back unless you're Romney.)

JackMcKee 2 years, 7 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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