Refinancing could save county $25,000 per year
Published 11:51 pm Saturday, October 7, 2017
NATCHEZ — Two weeks after seeking proposals to refinance a bond, Adams County leaders learned Tuesday the savings would be approximately $25,000 per year.
Supervisors heard from Duncan-Williams Investment Bankers representatives at the county board’s last regularly scheduled meeting.
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The county is considering refinancing a 2013 bond used to purchase the former International Paper site for industrial development purposes.
Board of Supervisors President Mike Lazarus said the county received news of a 4.7-percent savings on its interest rate. The interest rate obtained in 2013 was approximately 6 percent.
Supervisors still must vote to accept the bond.
“I expect we will,” Lazarus said. “We are exceeding our expectations on what we thought we would save.”
Over the lifetime of the bond, the county would save approximately $400,000, Lazarus said. Lazarus said while $25,000 a year is not a great deal of money, the lifetime savings of $400,000 could be used to help complete the ring-levee at the former Belwood Country Club site if necessary.
“Anytime we can save money for the county, that is what we are going to do,” Lazarus said. “Every day, an opportunity presents itself to save money. If you look hard enough, you will find it.”
The interest savings is approximately 1-percent more than what the Duncan-Williams representative pitched to the county. E.J. Gregory said if the county had been in the market three weeks ago, it would have saved 3.71 percent, or a savings of only $21,000 per year.
In August 2013, the county paid $9.25 million on the 478-acre former IP property from Rentech Inc. for industrial development.
The $25,000 savings includes the Duncan-Williams fees. The firm would not get paid unless the county closes on the bond.