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Daviess County Considering Issuing New Bonds For Jail
Updated March 2, 2016 7:02 AM
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(DAVIESS CO.) - Daviess County officials are considering issuing new bonds for the jail. The reason is simple, to try and get a lower interest rate and save some money.

County Councilman Jo Arthur told Mike Grant of the Times Herald he thinks it would significantly lower the interest rate.

Currently the county owes $5.62 million on the jail bond that is due to be paid off by July 2023. In addition, the special tax rate the county established is expected to produce $600,000 in surplus funds that could be applied to a refinance effort.

President of the County Council Mike Myers says the lower rate would save taxpayer money saying the lower the interest rate the bigger the savings.

The county does not intend to extend the term of the bonds and wants to complete the payout on schedule.

The $600,000 in extra funds in the account are also leaving the council with some decisions. Some want to use the money to update the equipment at the jail or use it toward the government center on Main Street and use some of the money to pay down the principal on the bonds.

If the county intends to spend any of the surplus funds in the jail pay-off account, it will take an act of the Legislature to do so. When the account was originally established the county got a special law passed that would only allow for the money collected to pay off the jail debt to be used on the jail. That law though could be changed, if the county can convince the general assembly to change it.

The county council has directed its financial consultant H.J. Umbaugh and Associates to investigate the potential savings and set up a possible refinancing of the bonds this summer.

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