Iron County studies refinancing loan
HURLEY — The Iron County Finance Committee continued to move forward with the process of refinancing courthouse-jail construction bonds from 2004 Thursday.
If the bonds, originally borrowed for $3.2 million, are refinanced, the county is projected to save $15,000 to $20,000 a year, based on interest rates as of Wednesday, according to Dave DeYoung, senior vice president of the public finance department for Stifel, Nicolaus and Company of Brookfield, Wis.
In July, DeYoung told the committee interest rates at the time projected savings of $20,000 to $25,000 a year.
According to DeYoung, if interest rates continue to erode by October, the county may not go through with the refinancing.
“If the savings fall below $100,000 total, we don’t recommend going through with the program,” he said.
He said he understands the uncertainty with the stock market, including who will replace Ben Bernanke as chairman of the Federal Reserve, a potential military strike in Syria and other factors affecting the economy.
“Bond buyers don’t like uncertainty, and there is a lot of uncertainty out there now,” DeYoung said.
The market seemed to take a “turn for the good” recently and that is why DeYoung is having the county continue to investigate refinancing.
DeYoung recommended a resolution to the full county board to allow his company to continue the process.
The committee approved it and it will be on the agenda for the county board meeting on Sept. 24.
A final resolution for refinancing will be presented to the county board in October.
DeYoung said he will address the finance committee again on Oct. 10 with an update on interest rates before the final resolution goes through.