Big savings with low interest rates

By Reed Anfinson
Publisher
While historically low interest rates mean Swift County is getting very little for its investments, they also mean that there are opportunities to refinance its debts, saving hundreds of thousands of dollars.
At its meeting Tuesday, May 4, commissioners met with George Eilertson of Northland Securities of Minneapolis to consider a request to refinance the bonds they sold in 2016. The bonds were told to finance expansion of broadband internet service to eastern portions of the county by Federated Telephone.
With the county backing the sale of $7.78 million in bonds, Federated would get a much lower interest rate making expansion of the broadband service feasible.  The county would sell the bonds and back them with its general obligation bond authority. However, Federated would make the payments....
Refinancing hospital 2014 bonds
While it is a few months away yet, Eilertson said the county could also begin to consider the refinancing of the 2014 Swift Count-Benson Health Services bonds.
Those bonds have a call date of Feb. 1, 2022. The county can consider the refinancing of those bonds in the fall, Eilertson said.
These are hospital revenue bonds, but they have the general obligation backing of Swift County. SCBHS is paying close to 3.5% interest on those bonds and could potentially cut that rate in more than half based on the current market. By doing so, it would achieve a savings of about $50,000 a year, he said.  Overall, the county would be looking at a savings of $550,000....
For more on this story, please support community journalism and subscribe to the Swift County  Monitor-New