Gilmer Refinancing More G.O. Bonds

In a special called meeting, the Gilmer County Board of Commissioners met with Andrew Tritt, Managing Director, and others from Stifel, Nicolaus and Company, Inc.

The meeting culminated with approval from the county to finalize their resolution in order to complete refinancing on the remainder of the 2007 G.O. Bonds, but this also represents the final outstanding bonds that the county can refinance according to Chairman Charlie Paris who said the county has saved a little over $4 million including this new refinance.

The main reason for refinancing? The county is receiving a lower interest rate on the debt, 2.82% as opposed to the original 5%. This lower interest rate translates to less money coming from the county as they continue paying the debt. According to Stifel, Nicolaus and Company, Inc. the county will realize a gross savings, from this specific set of Bonds, of $969,017. That gross savings will be realized at $50,000 per year with the exception that in the final two years before maturity, 2030 and 2031, it will increase to $60,o00 per year in savings.

Moving forward with the refinancing, Chairman Charlie Paris said, “It means money savings pure and simple.” By getting the extra savings every year, Paris said the county is easing budget processes and helping the county deal with crisis situations as equipment might breakdown or an emergency occur. The savings also means the county does not have to finance certain equipment which translates to less debt for the county.

And speaking on the county’s debt, Paris went on to say, “We have not made an appreciable reduction in our Bond debt… but were able to reduce the short term debt which helps.”These steps allow balanced budgets each year and progress to reverse our financial situation to manage the long term debt.

Now, the County may be setting up to actually have a contingency fund planned in the next budget process for emergencies which exemplifies the progress. With continued growth, the county may look to the distant future where the county’s financial situation dictates a balanced budget with a sizeable contingency fund translating, according to Paris, into an opportunity to lower taxes for citizens.

Along with Stifel, Nicolaus and Company, Inc. The Board of Commissioners is also using Gray, Pannell and Woodward, LLP. as the Attorneys for the legal side of the refinance.

Make sure to find out more by watching the Special Called Meeting below: