Warren County opts out of $10-million bond reissue

Warren County has opted out of re-financing a $10-million portion of a $45.7-million Capital Improvement Bond originally dating back to 2004.  When Ted Cole of the Richmond-based

On Oct. 18, Ted Cole and Jesse Bausch, at podium, explain that the numbers weren’t crunching as well as they had been two weeks earlier. They continued to “un-crunch”, leading the County to opt out of a VRA Municipal Bond re-issue this month.

Financial and Bond Consultant, Davenport & Associates originally broached the re-financing idea on October 4, historically-low interest rates hovering around 1-percent would have

realized a net savings of $667,000.

Two weeks later, rates that had already climbed to 2.5-percent had cut almost $145,000 off those projected savings.  With another two weeks remaining before a fixed interest rate on the municipal Bond issue through the Virginia Resources Authority was set, Cole suggested caution.

The County Bond Consultant recommended the County ONLY participate if the rate set on November 2^nd promised a net savings of 7-percent on the reissue.

Last week County Administrator Doug Stanley confirmed that the rate set November 2^nd did not meet that threshold.

The County’s original Bond issue of 2004 went to finance Capital Improvements, including Skyline and Warren County High Schools; Samuels Public Library and Bing Crosby Stadium; as well as the renovation of old Warren County High School into a state-of-the-art Middle School on Luray Avenue.