The only reason for the County Commissioners and their related public trust to consider refinancing the outstanding jail bonds is to save the taxpayers money. Somehow this has been lost in the discussions of recent weeks. The public trust could decide to do nothing. That would be fine. But it would cost several hundred thousand dollars in taxpayer money over the next ten years. Refinancing, if done by soliciting bids from area banks to buy the approximately $7,050,000 in tax-exempt bonds, would be good business. It would allow banks to use their local depositors’ money to buy the bonds at a greatly reduced interest rate than the current average bond rate of 4.45 %.
Any other financing option costs more money; involves more “suits” from Oklahoma City, and thereby reduces the savings sought to achieve in the first place. The public trust should direct a credible financial advisor to prepare a Request for Proposals for submission to area banks from as far west as Elk City to Clinton to Weatherford and even Oklahoma City. The Secretary of the public trust, should be responsible for mailing some thirty packets out to the banks and for receipt of the proposals by a date and time certain. This insures integrity in the process. This process may well produce a very attractive interest rate on the obligations, as was the case with the courthouse renovation note, purchased by a local bank branch in Cordell for an interest rate of 1.74%, a whopping sixty per cent cheaper than the jail bonds!
After this simple process is followed, the County Commissioners and the public trust will know a lot more than they do today about what steps to take next. And most important, so will the taxpayers of Washita County.
J. Brent Clark, P.C.
Bond Counsel
Norman, Oklahoma