County Jail Bonds To Be Re-Funded

The  Washtenaw County board of commissioners has given initial approval to authorize the re-funding of up to $16.5 million in outstanding capital improvement bonds, which were originally issued in 2006 to fund expansion of the county jail. The action took place at the board’s April 2, 2014 meeting.

According to a staff memo, $16.9 million in principal remains of the original $21.675 million bond sale. The county’s bond counsel, Axe & Ecklund, is advising the re-funding because of lower interest rates, and estimates a net savings of about $869,000 over life of the bond issue. The new issue would be called “County of Washtenaw Capital Improvement Refunding Bonds, Series 2014.” [.pdf of refunding resolution]

Bond counsel John Axe told the board that current interest rates are between 4% and 4.3%. He estimated that the re-funding interest rates would be between 2.2% and 3.8%.

A final vote on this item is expected at the board’s April 16 meeting.

This brief was filed from the boardroom of the county administration building, 220 N. Main St. in Ann Arbor. A more detailed report will follow: [link]