Treasurer says public facilities district will refund conference center bonds; resolution due at next meeting

Cowlitz County Treasurer Deborah Gardner updated the Board of Commissioners that the county's public facilities district (PFD) plans to refund outstanding bonds tied to the conference center, and staff will present a resolution and an amendment to the interlocal agreement for signature at the board's meeting on the 21st.

“Right now, the amount that they're refunding is, 1,100,000. And to be honest, I don't have, the original amount of debt that was borrowed,” Gardner said.

Gardner told commissioners the PFD borrowed funds in 2003 to build the conference center, refunded that borrowing in 2012, and is now planning another refunding in order to extend payments and lower the current annual debt-service payment. She said the refunding is not necessarily intended to reduce interest rates; the PFD will go to market for new rates and restructure maturities.

“It's the same amount of money. They're not getting more money. They're just extending the length of time,” Gardner said. She added the extended schedule would give the PFD more annual cash flow to progress planned projects, and that the PFD may later go back to the market for additional financing tied to identified future projects.

Chairman (unnamed) and other commissioners discussed the county's contingent obligation under the original agreement: the county issued the bonds and would be obligated to pay if the PFD could not. Gardner and commissioners noted the refunding affects the county's overall bonding capacity because the county must account for the PFD's outstanding obligations when planning future county borrowings.

Nut graf: The board received the treasurer's informational update and was advised the PFD will present a resolution and an amendment to the interlocal agreement for the board’s signature; staff said the finance committee reviewed and recommended proceeding to the full board.

Gardner said the principal amount being refunded is $1,100,000. Commissioners and staff discussed that the original principal and past refunding amounts — including a 2012 refunding of roughly $4.849 million — would be checked in county records. Gardner said the finance committee reviewed the request and recommended the board move to authorize signing when the form documents arrive.

Ending: The refunding resolution and the interlocal amendment will appear on the board's agenda for signature on the 21st; staff will bring additional project plans and the finance committee's materials back to the board when available.