Berrien County considers refunding street-drain bonds; advisers cite potential savings but legal hurdles remain

Berrien County officials and outside advisers discussed a potential refunding of bonds used to finance a street drain project, with advisers saying a refinancing could yield material savings but that significant legal and market work remains before the county proceeds.

Roger Swetz, bond counsel with Dickinson Wright’s Grand Rapids office, told the Berrien County board that his firm and the county’s financial adviser, Steven Burke of MFCI, had reviewed the November financing documents and identified refunding as a practical option. Swetz said the refunding would have to close on or before June 30 because the existing debt “can only be prepaid on 1 day a year.”

Swetz and Burke provided a preliminary savings estimate but cautioned it is not guaranteed. “There’s a lot of work to be done and issues that we need to dig into to make sure that this can happen. It’s not a sure thing yet,” Swetz said.

Nut graf: The advisers said a refunding that included a county pledge of full faith and credit could…