SHEPHERDSVILLE — Bullitt County officials might have the opportunity to save over $650,000 on a current bond issue.
However, fiscal court members and county attorney Monica Robinson want to find out a bit more information before making any decision.
Representatives of Ross Sinclair and Associates presented an ordinance which would allow the county to refinance an existing bond issue through the Kentucky Association of Counties.
Due to lower interest rates, the county could save $40,000 per year through the end of the bond issue in 2028.
Robinson said she was not aware of the ordinance prior to the meeting and she was concerned that any change to the bond issue might affect the insurance coverage the county has through KACO.
She was not against saving money but she was also concerned that with fees over $20,000, such a contract might need to be put out to bid.
Dwight XXXXXXXXX said that since it was a professional service, bids would not be needed.
He said that a client has been the Bullitt County Public School System, which recently refinanced a bond issue and expects to save $1 million.
Another point was that he wondered why KACO had not offered the same refinancing option to the county.
That was a point that struck home for magistrate Ruthie Ashbaugh.
She felt the KACO officials should be invited to the Dec. 4 fiscal court meeting to discuss the situation.
Magistrate John Bradshaw said his concern was the ordinance stated that a tax could be forced to be imposed if the debt service is not paid.
Company representative and former Spencer County Judge/Executive David Jenkins said that was required wording.
Under the general obligation bonds, the same money used now for debt service would be utilized to pay the new debt service, which should be less than the current amount.
If the interest rates rise before a final sale is done, the county would not be obligated to move forward.
Bullitt County Judge/Executive Melanie Roberts said it is the duty of the elected officials to look for ways to save tax dollars and it appeared refinancing would provide a lot of savings.
She agreed to table the matter to see what KACO officials have to say and whether there would be that large of savings.