Moffat County Commission exploring refinance options for public safety center

In other action...

During its regularly scheduled meeting Tuesday, the Moffat County Commission:

• Heard refinancing options for the Moffat County Public Safety Center.

• Approved, 2-0, a $148,700 bid from Anson Excavation & Pipe, Inc. for upgrades at the Maybell Wastewater Plant.

• Approved, 2-0, a special event liquor license for Grand Olde West Days.

• Approved, 2-0, Moffat County Social Services’ March 19 meeting minutes.

• Heard Moffat County Social Services director’s update.

• Approved, 2-0, Moffat County Social Services electronic transactions for February.

• Discussed Colorado Health Benefits Exchange.

• Heard Moffat County Social Services monthly reports.

• Heard Craig/Moffat Economic Development Partnership update.

• Approved, 2-0, Moffat County annual wildfire operating plan.

Moffat County Commissioner John Kinkaid was absent from Tuesday’s meeting. Kinkaid is on a 30-day leave of absence for health and personal reasons.

— The Moffat County Commission on Tuesday explored its options to refinance the second of two certificates of participation used to fund construction of the Moffat County Public Safety Center.

Dave Fleming, a member of the Moffat County Finance Corporation Board, said the second certificate, issued in 2001, could be refinanced after 10 years.

With interest rates at near historic lows, the Finance Corporation Board decided it was time for the county to take advantage of its option to refinance.

Fleming presented two plans to the commissioners during Tuesday’s meeting. Both options would result in significant cash savings for the county.

The first option outlines a net future value savings of $244,863.17 between now and the satisfaction of the loan in June 2025 through a reduced annual payment.

The second option would yield a higher net future value savings of $352,326.46. However, because the county’s annual payment would not change — freeing up more money to pay down the interest portion of the loan — the savings would not be realized until the loan is paid.

Because of unknown future economic circumstances, Fleming recommended going with Option A, which he said provides a lower amount of risk.

“If you wait until the end (of the finance term) you could find yourself in a bind depending on the amount of cash flow coming into the county,” Fleming said. “You could find yourself using those savings for something else. The most prudent way to go is to save a little bit each year.”

Commissioners Chuck Grobe and Tom Mathers agreed. Commissioner John Kinkaid was absent from Tuesday’s meeting.

“I like (Option) A better than (Option) B because it lowers our payment right now,” Mathers said. “We would get our savings yearly instead of at the end of the note, and we could use that money for building maintenance, projects and upkeep for Moffat County.”

The commission did not take action on the issue Tuesday but delegated staff to begin the refinancing process, which takes an average of 60 days and will cost approximately $40,000.

The majority of the $40,000 cost goes to attorney fees, Fleming said.

Joe Moylan can be reached at 970-875-1794 or jmoylan@craigdailypress.com.

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