Commissioners direct staff to pursue $24.88 million refunding aimed at roughly $1.7 million 10-year savings

County finance staff and guests from DEC Associates described a proposed refunding of approximately $24,880,000 in outstanding debt tied to prior USDA financings. County staff said the refunding would aim to reduce interest costs without extending the bonds’ payment schedule.

Andrew Carter of DEC Associates said the county’s savings estimate is about 7% on present-value terms, noting similar North Carolina counties recently achieved lower savings. Staff said estimated net present-value savings would be approximately $1.7 million over 10 years and that actual dollars-out savings exceed that figure (DEC indicated roughly $2.0 million in nominal cash-flow savings). Carter and staff emphasized the proposal would not extend the original debt service schedule; it is a “current refunding” permitted at the 10-year call date.

County staff explained that the resolution under consideration would authorize staff to move forward with the refunding process and market the bonds if market conditions remain favorable; the resolution does not bind the county to complete the refunding if market conditions change.

Why it matters: The proposed refunding would lower the county’s interest expense on previously issued debt while keeping the same repayment timeline; the expected savings would reduce budgeted debt service costs over the next decade.

Action: A motion directing county administration to pursue the refunding was made and carried by voice vote. Commissioners were told that if market conditions deteriorate staff would halt the process and return to the board before issuing bonds.