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Board approves up to $18.96 million in refunding bonds for Ottawa County Water Supply System
Summary
Commissioners approved a resolution authorizing issuance of Ottawa County Water Supply System Refunding Bonds Series 2026, not to exceed $18,960,000, with projected net present value savings of about $880,000 (≈5%).
The Ottawa County Board approved a resolution to authorize issuance of the Ottawa County Water Supply System Refunding Bonds Series 2026, not to exceed $18,960,000, after a presentation from Pat (speaker on the record). The refunding would replace a 2007 bond and is projected to save just under $1,000,000 in total savings, with a net present value of about $880,000 — roughly a 5% savings, above the 3% legal threshold required for refundings.
Pat explained refunding is similar to refinancing a mortgage: selling new bonds at a lower interest rate to replace higher-coupon portions of the old issue. The board had the county’s finance adviser (Steve Burke of MCMI) and bond counsel (Laura Bassett of Dickinson Wright) available by phone for technical questions. Commissioners asked clarifying questions about coupon structures and past refunding history; the resolution was approved on a roll-call vote.
The resolution authorizes staff to proceed with the refunding process under the stated not-to-exceed amount; the county will present final sale terms when available.
"This will save about $23 per million gallons or about $138,500 a year as a collective," Pat said, summarizing operational savings for ratepayers.
