Commissioners Court takes action to save county millions on tax bonds

(ROCKWALL, TX — November 3, 2017) Action taken by Rockwall County Commissioners Court could lead to the county saving about $3.7 million in interest on almost $27 million in tax bonds.

The vote taken by commissioners during their Oct. 24 regular meeting unanimously approved a resolution that authorized preliminary action involving the proposed issuance of tax refunding bonds.

“When we’re talking about refinancing, it’s a classic example of taking older, higher interest rate debt and replacing it with new, lower interest rate debt to produce a net savings effect,” Financial Advisor Marti Shew, director of Hilltop Securities Inc., told commissioners before their vote.

Shew and Boyd London, managing director of Hilltop Securities Inc., recommended refunding two Series 2009 tax bonds—unlimited tax road bonds totaling $8.29 million and limited tax bonds totaling $18.67 million.

The financial advisors recommended two issues—the unlimited tax bonds in late November and the limited tax bonds early next year.

Refinancing the approximately $8.29 million in unlimited tax road bonds would result in about $1.3 million in gross savings, which translates to about $75,000 in annual savings.

Refinancing the approximately $18.67 million in limited tax bonds would result in gross savings of about $2.39 million, annual savings of about $135,000.

Shew said the resolution approved by commissioners was preliminary action that will allow the financial advisors to move forward with the bond issuance process. Final action involving the $8.29 million in unlimited tax bonds is scheduled on Nov. 28.

Submitted press release.

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