Whether you call it “refunding” or “refinancing,” Genesee County stands to save a pile of money by consolidating a couple loans and reworking the payment plan.
Speaking at the Genesee County Legislature’s Ways & Means Committee meeting via Zoom videoconferencing this afternoon, County Treasurer Scott German said the municipality may have the opportunity to save more than $20,000 in interest costs over the next 13 years.
“It’s called refunding, but for us, regular folks, it’s refinancing,” German said. “We’re going to refinance two of our existing debts.”
The two debts in question, both Public Improvement Serial Bonds, are from 2009 and 2014, totaling $2,050,000 and $4,745,847, respectively.
German said there are four years left on the 2009 debt, but “doing that one by itself wouldn’t be worth it because the cost would be prohibitive.”
So, working with Financial Advisors of Syracuse and the bond counsel firm of Orrick, Herrington & Sutcliffe of New York City, the county is prepared to put the two loans together and, if interest rates are favorable when the time comes to refinance in September, it could result in a net savings of $263,819.63.
“We technically can’t refinance that until September, so all we’re doing right now is taking care of all the paperwork – getting that out of the way – so when the market looks good in September, we’ll go to market,” he said. “If the rates go up between now and then, we won’t do it. We’ll just pull it.”
Committee members approved a resolution authorizing the debt consolidation with the goal of realizing a savings in interest fees.
In other action, the committee recommended approval of an affiliation agreement with Brockport State College for Rebecca Nigro to participate in and complete an internship that will help her complete her master’s degree in Public Administration.
It was reported that Nigro is in her last semester and is carrying a 3.95 grade-point average.
The college approved the internship as long as the county had someone with a master’s degree to oversee Nigro’s activity. Nigro works for the county, serving as the supervisor/cluster care for the Department of Social Services.