Adams County to borrow $650K for future road workPublished 12:07am Tuesday, August 7, 2012
NATCHEZ — The Adams County Board of Supervisors voted to take out a $650,000 loan Monday to fund road work and also voted to renegotiate an approximately $2.6 million road bond to reduce the payments the county pays on the bond each year.
The supervisors awarded a bid for the $650,000 “negotiable note” to Concordia Bank & Trust with a 1.74-interest rate.
The county’s original intention, County Administrator Joe Murray said after Monday’s meeting, was to refinance the $2.6 million road bond with Trustmark National Bank and add $650,000 to the bond, extend the terms of the bond from five years to seven years and shift the payments to a different time of year.
The principal payment and half of the interest payment will be due in March, and the rest of the interest payment will be due in September.
The supervisors discovered through bond counsel, Murray said, that the $650,000 could not be added to the bond since it was already issued. The county, therefore, took out the additional $650,000 to be used for road work in the upcoming fiscal year, which begins Oct. 1, Murray said.
The bond was renegotiated with Trustmark, Murray said, to extend the terms to seven years, thereby shrinking the county’s yearly payments, and moving the two bond payments to March and September.
The interest rate on the bond of 2.9 percent did not change, Murray said.
The bond was taken out last year to fund a road overlay program, and Supervisors President Darryl Grennell said the board did not have time to refinance the bond before its October payment of $525,000 came due.
Because that note came due early in the fiscal year, the board had to borrow money until tax receipts started coming in January, Murray said.
The loan to make ends meet through the end of calendar year 2011 was for a total of $1.2 million.
Although, Murray said, the road bond was not the sole factor in borrowing the money last year, he said this year the bond should not be a factor if the county has to take another loan out because the renegotiation reduced and shifted the bond payments.
Murray said the county will not know how much the payments will be until the paperwork is finalized.
Likewise, he said, the supervisors have not allocated the $650,000 to work on any specific roads yet.