Refinancing will save $160,000

Published 12:15 pm Wednesday, December 21, 2016

Lunenburg County will save a combined $160,000 on two past bond issues thanks to refinancing approved by its board of supervisors.

During their Dec. 8 meeting, supervisors approved refinancing its courthouse facility lease revenue bond and a 2005 general obligation school bond. County Administrator Tracy Gee said refinancing the 2012 courthouse lease bond will increase the budgeted amount for debt service over time, but avoid a one-time balloon payment of $1.9 million.

“The payment would have been made in 2022,” Gee said. “Now, the repayments will end in 2025.”

With supervisors’ approval, the refinancing will be handled by Benchmark Community Bank, which matched a low bid interest rate of 1.97 percent from BB&T.

As for the 2005B series school general obligation bond, supervisors voted to refinance the bond to realize upfront savings. Gee said there will be no net change in the annual debt service obligation. She said the savings may be used for “essential facility maintenance,” such as the courthouse painting project. Supervisors approved this refinancing to be handled through Carter Bank & Trust with an interest rate of 2.1 percent.

In other financial news from the meeting, Lunenburg County Public Schools paid off its past due debt service for fiscal year 2016, which ended June 30, presenting a check for $317,300 to the board.

“This catches them up.

They are now up to date with their debt,” Gee said.

Supervisors also approved declaring a 2008 Lunenburg County Sheriff’s Office service vehicle as surplus. Gee said the vehicle struck a deer in November causing $3,349 in damages while insurance only valued the car at $2,235. She said the sheriff asked the board to declare it as surplus and to accept the insurance value minus a $250 deductible. If the county had salvaged the vehicle, it would have cost another $350.

“It’s one of our older cruisers and we didn’t want to have anything happen to a deputy or passenger in it,” Gee said.

Supervisors also approved accepting and distributing $105 in Animal Friendly license plate fees to Southside SCPA.

Supervisors received a landfill liaison report, which included news that the first phase of construction at Container First Service landfill has been completed. The Virginia Department of Environmental Quality held a quarterly inspection and inspected the new construction.

The report also included details of an incident where workers from a Brunswick company attempted to dump trash at the Potts Spring site. Their manager agreed to keep them from doing so.

The board reappointed Tony Trent, Walter Thompson and Cecil Shell to the planning commission; and Herman Newcomb and Marianne Cicala to the IDA. Supervisors also reappointed Syndey Smyth to the Crossroads board and appointed Supervisor Alvester Edmonds to that board, replacing Supervisor Randy Slayton. The board tabled reappointments to the Social Services Advisory Board until January.

Following a closed session, supervisors voted to approve the transfer of county-owned property immediately behind the Lunenburg County Treasurer’s Office to the Industrial Development Authority (IDA), possibly for re-sale.

Near the beginning of the meeting, supervisors passed a resolution congratulating the Lunenburg Middle School ACE Team. The team recently completed its 2016 season, winning a first-place trophy for most wins and the Most Points trophy with 2,849 total points.