Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Finance topic
No spam. Unsubscribe anytime.
Finance director reports $3.38 million net savings from bond refundings, outlines tax-rate sensitivity
Summary
Finance Director Aaron Maynard reported refunding transactions that the county expects to yield $3,377,900.65 in net savings over 10 years (about $337,790 annually) at an approximate true interest cost of 2.73%, and presented an analysis showing a 64% home appraisal increase would be required to maintain current tax receipts under a projected certified rate of $1.16.
Finance Director Aaron Maynard gave a detailed briefing on recent refunding bond transactions and on how changes to assessed values could affect property-tax bills.
Maynard said the county’s refunding actions produced a total net savings of $3,377,900.65 over the next 10 years — roughly $337,790 per year — and reported an approximate true interest cost of 2.73%. He described two primary refunding issues: district school refunding bonds with a face amount of $42,990,000 and a reported premium of $5,399,490.40, and general obligation refunding bonds with a face amount of $33,405,000 and a reported premium of $4,238,545. Maynard also listed issuance expenses including financial adviser fees (Stevens Inc.), bond counsel (Bass, Berry & Sims), rating agency fees to S&P, paying-agent fees to U.S. Bank and other customary costs.
Maynard walked commissioners through an illustrative tax-rate sensitivity analysis using an average home price of $478,615. He said the property tax on a $478,000 house at the current tax rate of 1.9089 is about $2,284.07 and that to generate the same $2,284.07 at an expected certified rate of $1.16, the home’s appraisal would need to rise to approximately $785,005.10 — a roughly 64% increase in assessed value.
The finance director concluded his report and invited questions; commissioners proceeded to recorded votes on budget amendments later in the meeting that referenced the county’s broader budget and debt-management activity.
