Washington County completes sale of general obligation bonds

The sale of Washington County general obligation bonds last month exceeded expectations regarding the amount of interest to be saved during several years’ worth of interest payments.
Financial experts generally recommend refinancing if a government can realize 3 percent savings. Joshua Hatfield, Washington County finance director, said, “We were over 15 percent. Everyone was pleased.” Washington County Director of Administration Scott Fergus called the refinancing “very successful.”
Annual saving in interest payments is around $3 million, and the county rolled over a $1.3 million escrow account to pay down debt and cover the issuance costs.
An online post by Moody’s Investor Services assigned an Aa2 rating to Washington County’s $5.6 million general obligation bonds, a strong, low-risk rating reflecting the financial stewardship of the county’s leaders.
In a related matter, the commissioners, at their May 18 meeting, unanimously approved an agent/registrar agreement with Zions Bank, Salt Lake City, Utah, for $300 per year for the general obligation bonds and a one-time escrow fee of $500.
The total original issue from 2007 included both borrowing and refunding. The 2017 issue is solely a refunding.
In 2007, the county needed about $6 million to pay for improvements in the 911 call center and public safety department not covered by a $9.3 million state grant; repair of the courthouse roof; development of the north side of the county airport and the building of three new hangars; replacement of the Hanlin Station railroad bridge on the Panhandle Trail; and improvements at both Mingo and Cross Creek county parks. The Washington County Authority closed out its loan pool bond fund, begun in 1999, in 2007.