Putnam County legislators consider paying off Lake MacGregor golf-course bonds to clear procurement limits

Putnam County legislators and county officials discussed on June 23 whether to use assigned fund balance to pay callable bonds tied to the county-owned Lake MacGregor golf course, a move officials said would remove tax-exempt bond restrictions that limit procurement options.

The discussion centered on two scenarios: a partial refund of about $1,734,000 in principal that would save roughly $175,000 in interest, and a full payoff of bonds totaling about $4,750,000 that officials said would save about $477,000 in interest. Commissioner of Finance Mike Lewis told the committee, “So currently, right now, we have $3,000,000 set aside.” He added the county could add up to $2,000,000 more from audit-assigned funds to reach a $5,000,000 callable-bond bucket.

Why it matters: County staff said eliminating the outstanding tax-exempt bonds would lift IRS safe-harbor restrictions now attached to the property and would let Putnam County issue a new request for proposals that shifts more operational responsibility and cash-handling to a private operator. County Commissioner of Buildings and Grounds…