Cook County News Herald

County to save money by refinancing bonds




Not one objection was made at a September 13 public hearing at the Cook County courthouse to consider refinancing bonds to pay off the cost of the 1996 courthouse addition and construction of the Cook County Law Enforcement Center in Grand Marais.

Accountant Carolyn Drude of Ehlers & Associates told the county board she conservatively estimated a savings of $127,000 over the course of four years. The new bond issue, expected to be $1,420,000, will bring the interest rate from 3½-4% down to .85-1.35%. In addition, money required to be in reserves with the old bonds can be released and used to buy the principal down on the new bonds.

“The sole purpose,” said Drude, “is to save money for the county.”

The first bonds for the building projects were refinanced in 2003 due to lower interest rates as well. Cook County Auditor-Treasurer Braidy Powers estimated the amount saved in the 2012 budget would be about $20,000.

The public could stop the refinancing even after the hearing. If a petition requesting that the issue come to a vote of the public were signed by the number of voters representing 5% of the votes cast in the last general election and were filed with the county auditor within 30 days of the public hearing, a vote by the public would be required.



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