The Barrow County Board of Commissioners voted Tuesday night to refinance $12.4 million in bonds in order to delay for three more years the annual payment of principal.
The unanimous action authorizes that Merchant Capital LLC may proceed with the restructuring of the debt prior to the start of the county’s new fiscal year that begins Oct. 1.
The original bonds were issued in 2006 by the Joint Development Authority of Winder-Barrow County for the purchase of about 250 acres of land near the Barrow County Airport.
The board’s action means the county will not have to pay about $1.8 million in principal payments over the next three fiscal years. But that debt will be added to the back end of the obligation, extending payments through Sept. 30, 2027.
County pushes debt forward
Because of a lower interest rate, the county will save about $283,289 over the long term.
The board’s action followed a financial presentation by county CFO Rose Kisaalita, who said budget requests for FY2012 have exceeded by $6.8 million the projected revenue.
Kisaalita also said the county at the current pace of spending will spend about $1.5 million more than it will take in by the end of the current fiscal year Sept. 30.
She urged the board to freeze about $3 million of the remaining operating funds for FY2010, allowing only emergency spending for the fourth quarter of the fiscal year.
The board did not take any action on that request.
Also Tuesday night, the county’s health insurance broker made a presentation of the county’s options for continuing coverage for FY2012 under the Athens Area Health Plan Select Inc.
After the presentation of three options, the board on a motion by commissioner Ben Hendrix agreed to delay action until a called meeting that has been scheduled for noon Monday.
The board’s action followed a financial presentation by county CFO Rose Kisaalita, who said budget requests for FY2012 have exceeded by $6.8 million the projected revenue.
Kisaalita also said the county at the current pace of spending will spend about $1.5 million more than it will take in by the end of the current fiscal year Sept. 30.
She urged the board to freeze about $3 million of the remaining operating funds for FY2010, allowing only emergency spending for the fourth quarter of the fiscal year.
The board did not take any action on that request.
Also Tuesday night, the county’s health insurance broker made a presentation of the county’s options for continuing coverage for FY2012 under the Athens Area Health Plan Select Inc.
After the presentation of three options, the board on a motion by commissioner Ben Hendrix agreed to delay action until a called meeting that has been scheduled for noon Monday.
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#1
Jim
on
08/01/10 at 03:50 PM
[Reply]
You need to get the debt paid instead of putting it off.