County refinances fairgrounds bonds

EPHRATA - Grant County is completing the issuance of Limited Tax General Obligation Refunding Bonds to refinance a portion of the 2007 Limited Tax General Obligation Bonds to achieve interest cost savings.

The bonds involved in the refinance were sold in 2007 to raise $12 million for several upgrades at the Grant County Fairgrounds, according to County Commissioner Cindy Carter.

"The bids came in under cost, and we were able to do more upgrades than anticipated," Carter said.

According to 29-year County Treasurer Darryl Pheasant, the bond refinance is a lot like the re-mortgaging of a house. In that case you take out a loan at a lower interest rate to pay off the existing loan.

In this case, the new bonds will be placed on the bond market for companies that invest in bonds. Pheasant said the funds generated will pay off the original bonds.

"The owner of the new bonds could be completely different," Pheasant said.

The good news for taxpayers, Carter noted, is that the interest rate on the 13-year refunding bonds will be 2.27 percent. The original bonds carried a rate of about four percent.

The Limited Tax General Obligation Refunding Bonds were priced on Feb. 23. According to Pheasant, the County achieved a total net savings of $466,863. The average annual savings will be approximately $35,912.

"We have timed this refinancing near an interest rate low," Pheasant said.

As part of the process, County Commissioners and staff conducted a presentation to the national rating agency of Standard & Poor's. According to Darryl Pheasant, the County received a rating grade of AA-.

"This is a great accomplishment for the County and its citizens," he said.

According to Pheasant, the AA- bond rating was based on Demonstrated track record of strong fund balances; Strength of the local economy; Growth in assessed value; Financial practices and policies administered by the Commissioners and staff; and Experienced management in operating the County in an efficient manner."

"This bond rating grade reflects that Grant County is very well-managed and has excellent financial policies and practices in place for the benefit of our citizens," Carter said.

The presentation team for Standard and Poor's was comprised of Commissioner Richard Stevens, Carter, Pheasant and Bond Underwriter Jim Nelson of D.A. Davidson & Co.