Quantcast

Refinancing likely to yield windfall for Warren County

The Warren County Public Safety building, in use since 2003, is about to be refinanced. A lower interest rate on the remaining balance of the $23 million original construction costs will likely save county taxpayers $400,000 to $670,000 over the next decade, county officials have estimated.

The Warren County Public Safety building, in use since 2003, is about to be refinanced. A lower interest rate on the remaining balance of the $23 million original construction costs will likely save county taxpayers $400,000 to $670,000 over the next decade, county officials have estimated. Photo by Thom Randall.

— Warren County residents are likely to reap savings of $400,000 to $600,000 through the pending refinancing of the county public safety building.

The Warren County Board of Supervisors voted unanimously Feb. 17 to take steps toward refinancing the building, which houses the county jail, the county sheriff's offices and regional dispatch headquarters.

New Warren County Treasurer Michael Swan noted that interest rates have dropped substantially since the $23 million construction project was originally financed in 2003. Refinancing at lower prevailing rates would save taxpayers $40,000 to $60,000 per year over the next decade through lowered bond payments, he said.

Bond interest rates, he said, fluctuate daily, so the amount of savings couldn't be pinpointed in advance of securing the deal. He said that calculating the potential net savings at municipal bond interest rates prevailing several weeks ago, the county would have saved $670,000 in a refinance deal, after paying $16,000 or so in bond counsel fees and another modest amount for advice from a financial consultant.

“Let's strike while the iron's hot,” he said, urging the supervisors to take advantage of interest rates before they might increase. “Let's do this quickly.”

Swan noted that the refinancing idea had emerged from talk circulating during the recent New York State Association of Counties convention in Albany.

County Administrator Paul Dusek warned the supervisors that there was no guarantee of savings, because a drastic change in prevailing interest rates could occur while arranging for the refinancing, a process that could take until March 20 or so. If interest rates jump within the next 30 days, the county could ditch the refinancing effort, Dusek said, just before putting the bond out for bid.

“We're not going to do a negative deal,” he said.

In other business, the county board:

• Approved a law granting Warren County planners the authority to review planning and zoning issues referred to them by local towns – effectively taking place of the county planning board, which was recently disbanded.

0
Vote on this Story by clicking on the Icon

Comments

Use the comment form below to begin a discussion about this content.

Sign in to comment