County Cashes in on Court House

Fannin County gained $672,185.81 last night. At its November 8th meeting, the Board of Commissioners approved a proposal to refinance the County Court House Facility. The move seemingly was unexpected and apparently began as an exploratory effort to feed the famished 2012 budget. It started with a presentation by Merchant Capital Senior Vice President Philip W. Fletcher III.

Fletcher explained that Fannin County’s Court House Building, including the County Jail and a variety of administrative offices, currently costs the county close to $9.8 million in existing debt. The debt was incurred 10 years ago in 2001 and Fletcher said that now the county has the option of refinancing the debt at a lower interest rate.

“These good interest rates are a blessing,”

Fletcher quipped. The county presently pays a rate of 4.2 percent. However, the new rate outlined by Fletcher is 2.39 percent, giving the county a savings of $672, 185.81.

“You can take these savings in the next year or you can take them over time, but most people take the savings up front, because it’s tough budget times,”

Fletcher said. Following Fletcher’s part of the presentation, Vice President Trey Monroe confirmed Fannin County’s

“preference was to take the savings up front.”

According to County Clerk Rita Kirby, the savings will be available for the 2012 budget. In a recent correspondence with FYN, Kirby noted that

“the intended use for the savings is to be able to operate the day-to-day business of the county without having to cut department budgets or personnel.”

The move comes on the tail of the Board’s decision last week to lay off 18 employees from the Road Department and public outcry against cuts to the EMS Department. Last month, the Board restructured the overtime pay structure for EMS employees.

In order for the county to receive these savings, it must close on the deal by December 7th. According to Merchant Capital’s persentation, the 2.39 percent will be a fixed rate for the life of the 10 year loan, where final payment will close out on April 1, 2021.

In light of the December 7th deadline and the lure of swift savings, the Board unanimously approved to move forward with the deal.