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County staff recommends moving bond-refunding engagement to Monday; estimates $1 million savings
Summary
Finance staff proposed a bond refunding covering school, sheriff’s office and sewer debt that would not extend maturities and could save about $1 million over 10 years; the board agreed to move engagement letters and a public hearing onto the Monday agenda and schedule a Feb. 29 hearing.
Davidson County finance staff told commissioners on Jan. 8 that market conditions present an opportunity to refund three prior issuances — Oak Grove High School, the sheriff’s office building and a sewer series — and that the transaction would not extend the existing repayment terms.
County staff said the refunding could yield roughly $935,000 to $1,000,000 in gross savings over the next 10 years, depending on market conditions, and that bond counsel and underwriter engagement costs are estimated at about $200,000 on a roughly $22 million refunding transaction.
"The refunding will allow us to... it just simply gives you a better coupon rate and you're going to get a basically $1,000,000 savings over the next 10 years," staff said. The manager recommended moving engagement letters for bond counsel and underwriters forward and scheduling required actions with the state Local Government Commission.
The board agreed to place the engagement letter and a resolution on the Monday agenda and to set a public hearing for Feb. 29 to satisfy process and notice requirements. Commissioners were told the action will not lengthen debt terms and that the net savings depend on market timing.
A formal authorization was not completed during the Thursday meeting; staff said next steps include submitting preliminary materials to the Local Government Commission and finalizing the underwriter and counsel engagement.
