County will look into refinancing

Copyright 2017, The Commercial Review

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Jay County’s going to test the waters.

On Monday, Jay County Commissioners agreed to have the accounting firm of H.J. Umbaugh and Associates explore whether money could be saved by an early refinancing of Jay County Jail construction bonds.

“We should look at it now,” said commissioner Chuck Huffman. “I’m afraid we’ll leave money on the counter” if an opportunity to refinance is missed.

Jay Schools and South Adams Schools have refinanced bond issues in recent years to take advantage of historically low interest rates.

But the jail bonds were issued more recently and will not be “callable” — redeemable by the issuer — until 2019. That makes refinancing more complicated and could make the savings minimal.

If, for example, interest rates go up 1 percent, the annual savings would be an estimated $8,000 per year, according to Jason Semler of Umbaugh.

Advance refunding at current rates, on the other hand, would result in estimated savings of $19,000 per year and total gross savings of $232,170.

Semler, who spoke with commissioners at Huffman’s request, said it’s too early to tell which strategy is the smartest. Much depends upon what the Federal Reserve and bond markets do over the next year or two.

“The bond market keeps anticipating an interest rate increase,” said Semler.

But commissioners said they believe it’s still worth investigating.

Umbaugh will put together a term sheet and seek proposals.

“It will still be an estimate,” said Semler. “But you’d have a better idea. You’re not committing to anything.”

Any savings from refinancing would not go back into county coffers. Instead, said Semler, the money saved would be used to reduce the amount owed for jail construction. In other words, it would be passed onto taxpayers in the form of a slightly lower tax rate.

Also Monday, commissioners unanimously approved moving ownership of six properties now on the list for a tax certificate sale to the City of Portland.

Mayor Randy Geesaman presented a list that included 808 N. Franklin St., 510 W. High St., 815 E. North St., 516 and 518 S. Wayne St. (the former book bindery property), a vacant lot on Helen Street near the CenturyLink building and a vacant lot at 101 Dogwood Lane.

In other business, Doug Inman, Mike Leonhard and Huffman:

•Unanimously approved payment of $21,950 from the county’s infrastructure fund to Atlas Building Services for work done on the courthouse in late 2016.

•Approved a one-year agreement with Matrix Integration of Jasper for cybersecurity at a cost of $1,707.1. The firewall screens email and website access. “I don’t think we want to be without it,” said Inman.

•Took under advisement auditor Anna Culy’s suggestion to create an internal control oversight committee as recommended by Indiana State Board of Accounts. Internal fiscal controls have been a major focus of state auditors in recent years. Such a committee will first create then enforce internal controls. Culy recommended that the committee include the auditor, treasurer, clerk, a representative of the health department, a representative of emergency management, a commissioner and a member of county council.

•Heard bi-monthly activity updates from the emergency management agency, the retirement center, the office of building and planning, Jay County Development Corporation and Jay County Community Development.

•Spoke with Allen Pettyjohn, who is interested in helping develop an organization that would address the county’s heroin crisis by linking addicts with “accountability partners” with a focus on physical fitness. Pettyjohn, who said he had struggled with addiction issues when he was younger, has been meeting with law enforcement and others in an effort to get such a project off the ground. He asked that those interested in helping contact him at (260) 202-9365.

•Witnessed the swearing in of Tyler Hartzell as a new Jay County Sheriff’s Office deputy.

•Designated Jay Emergency Medical Service director Eric Moore and assistant director John McFarland as signatories for an account at MainSource Bank.