Washita County may be refinancing the balance of the bonds issued nearly 10 years ago to complete the restoration and remodel of the historic Washita County Courthouse. The original 20-year bond had a provision precluding any refinancing or early repayment for a minimum of 10 years, a period which expires in December of this year.
Brett Clark, who served as one of the financial advisers when the bond was first issued in 2009, told the board of commissioners that current low interest rates could make refinancing the bonds a very lucrative proposition for the county. Based upon today’s interest rates, he said, the county could save roughly $600,000 during the remaining 10 years of the finance term. The refinance would cost the county about $240,000 in fees, but by refinancing to a 10-year bond, which leaves the payoff at the same time as the existing bonds, the county would make up those fees plus a net of $600,000 based upon lower interest rates.
Randy Nelson, another of the county’s bond advisers, told the board members that the county’s current financial situation would make it difficult, if not impossible, for the county to acquire an A+ bond rating, as was done in 2009, but even with an unrated bond, current low interest rates would result in enormous savings for the county over the next 10 years. The loss in rating, he said, is attributed to recent decreasing sales tax collections in Washita County.
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