Starke County Officials Review Paperwork to Potentially Refinance Jail Bonds

Representatives from financial firm Baker Tilly presented bond refinancing information to the Starke County Council and Commissioners Monday night as the county has an opportunity to possibly save money on the 2013 jail bond repayment. 

The county currently pays $1,070,000 annually on the $14 million bonds that financed the Starke County Justice Center construction project.

There were several cost-saving scenarios given to the county.  The interest rates are lower which would free up annual cash flow. If the county decided to refund the bonds and keep the payments where they are, about $1.5 million would be generated in cash.   

The current interest rate is about 3 percent and the rate would drop to 1.6 percent if the decision is made to proceed. 

The bonds go through the year 2034. 

The council members and commissioners took the information under advisement to take a closer look at what was presented.  Council President Dave Pearman asked the Baker Tilly representatives to come up with a shorter repayment term just for another choice for the county leaders to consider to ensure they make the right, informed choice.