County to refinance bonds

Refinancing jail construction bonds could save Jay County more than $35,000 a year and more than $420,000 over the life of the bond issue, a financial consultant from accounting firm Umbaugh and Associates told county commissioners Monday.

“That’s good news,” said commissioner Chuck Huffman. “The savings here are close to double what we looked at before. I think we should go forward.”

Huffman, a banker as well as commissioner, had suggested earlier this year that refinancing be explored, and commissioners had tapped Umbaugh to see what the savings might amount to.

Jason Semler of Umbaugh said Monday that eight refinancing proposals had been received, some involving private placement of new bonds and some going to the open market.

Semler said the best prospect was private placement through the underwriting firm of Hilliard Lyons. Based upon initial figures, that would result in an interest rate of 2.402 percent and annual savings of $35,138 and gross savings over the life of the bonds of $421,653.

“The numbers could change a little bit,” said Semler, noting that the process could take 30 days or more. “We do have that risk with all of them.”

Commissioners unanimously directed Semler to proceed.

“It’s always nice when accountants bear good news,” said commissioner Doug Inman.

“Especially this time of year,” responded Semler, referring to income tax season.

Commissioners received more good news from Jay Emergency Medical Service director Eric Moore, who believes JEMS is on track to finish the year in the black.

“If we keep going as we are, we’ll have a surplus,” said Moore. His projections show JEMS posting a budget surplus of more than $77,000 by the end of 2017. “We’re looking to become self-sufficient.”

Moore, an employee of Jay County Hospital, has restructured work schedules and job descriptions and has outsourced bill collection.

County finances continue to be a concern for county government as a whole, particularly in light of the combined impact of residential property tax caps and changes in how farmland will be assessed.

At the urging of county auditor Anna Culy, commissioners asked Umbaugh’s Semler to put together an estimate on what it might cost to have the accounting firm develop some projections and different scenarios for the next few years.

“Your county is going to be hit harder than some,” said Semler, adding that 2019 will be the critical year.

“I just worry,” said Culy.

There’s also uncertainty over road funding, county engineer Dan Watson told commissioners, with the Indiana House and Senate taking different approaches this session.

“It all boils down to the funding issue,” said Watson. “There are still a lot of questions about what comes out of the legislature. … We’re trying to get local government as much money as possible. … There will be an increase. I just don’t know to what extent.”

Watson said that under the House road funding bill local governments would receive 42 percent of the new revenue, or about $277.4 million. Under the Senate version, local government would receive 20 percent, or about $114.7 million.

He cautioned that either way it’s impossible to know how much more money Jay County would receive.

For that reason, he urged commissioners not to buy new equipment or take on additional highway department staff at this point.

Commissioner Mike Leonhard, noting past practice, had asked that the county consider purchasing its own mini-excavator and doing culvert work on its own rather than hiring outside contractors. But Watson said he believes that would be a mistake.

Though bids were opened from 10 different dealers today on a mini-excavator Monday, Watson urged a “cautionary approach.”

“We are not in a position to accumulate more equipment or hire more employees,” he said. “We need other equipment replaced before we look at buying additional equipment. … Any new equipment and employee costs will have to come out of the highway department budget. This is not realistic at this time.”

The bids, which ranged from about $60,000 to nearly $112,000, were taken under advisement by the commissioners and will be reviewed by highway superintendent Ken Wellman.

In other business, commissioners:

•Learned that NextEra Energy Resources and Blattner Energy have complied with all of the necessary requirements to go forward with applying for a building permit for the Bluff Point wind farm project. “The ball’s in (Jay/Portland Building and Planning director John Hemmelgarn’s) court now,” said county attorney Bill Hinkle.

•Approved drainage plans for an expansion of SDP’s plant in Dunkirk.

•Increased the charge for county crews to clean out ditches from $55 an hour to $75 an hour. “It’s been $55 since the early ’90s,” said county surveyor Brad Daniels.

•Met with Craig Frazee of Dynamic Business Solutions, who will be working to make it possible to pay JEMS fees via the county’s website using a credit card.

•Learned from Sheriff Dwane Ford that the nurse serving the Jay County Jail will be providing four more hours of service per week under a revised contract at an annual additional cost of $7,488.