Jail warrants refunding saves county $766,000Published 11:40am Wednesday, June 27, 2012
The refunding of Morgan County’s 2003 Jail Warrants is saving the county $766,100, or about $200,000 more than what was originally anticipated, commissioners learned at their regular meeting Tuesday morning.
Ken Funderburk, executive vice president of Merchant Capital in Montgomery reported that the outstanding warrants totaling nearly $10 million sold at an interest rate of 2.2 percent, or 2.03 percent less the original interest rate. He said savings after expenses would total $766,100 over the 10-year life of the warrants, or about $75,000 to $85,000 per year.
“The deal went as smoothly as it could’ve gone,” Funderburk said. According to the records we researched, it’s the most cost efficient bond deal the county has ever made.”
“I’m really happy with the result,” said Commission Chairman Ray Long. “We’re realizing about $200,000 more in savings than what we had counted on earlier. We feel like we’re doing out job when we can find ways to save the taxpayer’s money.”
Four resolutions were adopted to complete the paper work process for the refunded bond issue as follows: authorized the issuance and making provision for the payment of $9.995 million General Obligation refunding Warrants, Series 2012; adopted, approved and authorized a policy and procedures for compliance of tax-exempt bonds with the internal revenue code; authorized the chairman to execute a revised fee schedule with Bank of New York as paying agent for the 2012 warrants; and authorized the chairman to direct the Bank of New York Mellon Trust Co. to invest cash balances in money market mutual funds.
In another matter, the commission voted to leave employee insurance premiums with Blue Cross the same as they were in fiscal 2011-2012.
Long recommended the move to facilitate the planning process for the 2012-2013 operating budget.
The commission voted on other matters as follows:
• Approved a low bid from Cowin Equipment Co. in the amount of $1,200 daily, $3,500 weekly or $10,000 monthly for the rental of a trackhoe excavator for District 1.
• Approved a bid from United Rentals/RSC in the amounts of $539 daily, $1,012.88 weekly or $2,244.88 monthly for renting a trencher for District 1.
• Authorized the chairman to execute a Rural Transportation System Grant application to assist in the operation of Morgan County Area Transportation System public transit services for Oct. 1, 2012, through Sept. 30, 2013, in the amount of $65,716 federal administrative assistance, $173,996 federal operating assistance and $200,000 federal capital assistance.
• Authorized Long to execute an agreement with the City of Decatur Community Development Department regarding HUD funding awarded to the Commission on Aging in the amount of $19,512 for April 1, 2012, through March 31, 2013.
• Declared a Badger rubber tired excavator and a 1986 Chevrolet two-ton dump truck as surplus and agreed to donate them to the Town of Somerville.
• Refunded a deed tax totaling $109.52 to Thomas J. House on behalf of Lera and Michael Long for a deed recorded in error in the Morgan County Probate Office.
• Approved a certificate to subdivide and/or consolidate for John Defreez, Taylor Circle, District 4.
• Approved a 30 mph speed limit on a portion of Bethel Circle in Distinct 2, following a traffic study and the recommendation of the county engineer.
• Approved a sales tax refund of $10,177.14 to Nucor Steel LLC for May.
• Approved a sales tax refund of $545.63 to MTM Recognition Corp. for the month of April 2011.
• Approved payment of $45,600 to Cobblestone Masonry Inc. for repairs to the Morgan County Archives building façade. Of this amount, $14,194 is being paid out of the Archives fund with a state grant and $31,406 is being paid out of the Capital Improvement Fund.