Bond move may save Bibb $1.35M

It’s a good time for homeowners to consider refinancing their mortgage, but Bibb County commissioners are getting an even better deal by refinancing bonds that bought Westside Stadium and helped build the Department of Family and Children Services building.

County commissioners this week approved a refinancing plan that will save about $1.35 million over the next 12 years. The Macon-Bibb County Urban Development Authority could begin working on a bond package next week.

“The county can cut its interest rate more than in half,” said David Lucas, senior vice president of public finance at Sterne Agee, a bond consultant.

Lucas, who is not related to a state representative of the same name, said the county has about $10.74 million now at an interest rate of about 5.44 percent. The county can refinance that debt for about $375,000 in fees, which would also get financed.

The new debt is expected to carry an interest rate of about 2.59 percent. That would add to the savings in a hurry. Bibb County is expected to save about $231,000 this year alone and more than $100,000 each year in the next five years.

Most of the debt is from bonds sold in 2000 to cover the costs of the Westside Stadium, courthouse improvements, radio equipment and work at the Board of Health, Lucas said. Bonds sold in 1996 covered improvements in the library system, and bonds from 1993 went to Fulton Mill Road property run by River Edge.

County commissioners heartily endorsed the deal Tuesday. Commissioner Lonzy Edwards called the deal a “no brainer.”

“I think this is an example of something that makes too much sense not to do it,” Edwards said.

Despite the savings, Bibb taxpayers shouldn’t look for lower property tax bills anytime soon. This year’s $231,000 in savings isn’t chump change, but it literally would amount to just several dollars a year on most homes. And county commissioners have talked about reopening the budget so they wouldn’t have to take $9.4 million from their financial reserves. Pulling from reserves could threaten the county’s credit rating. The current budget calls for the county to end its financial year next June with about $20 million in reserves.

To contact writer Mike Stucka, call 744-4251.