Kewaunee County will refinance about $3.635 million of its debt at the soonest practical moment after a vote by the County Board on March 17.
County Administrator Scott Feldt said some of the county’s bonds had high interest rates as high as 6.75%, so for several months he and and Finance Director Paul Kunesh have been working on a refinancing plan with consulting firm Hutchinson Shockey & Erly.
The plan could save hundreds of thousands of dollars depending on the interest rates, but the sudden volatility in the market has thrown a monkey wrench into the effort.
Jeff Belongia from Hutchinson Shockey & Erly told the board that investors have begun “sitting on their hands,” and when they do bid on bonds they generally will guarantee the bid for only 24 hours.
Feldt and Kunesh asked the board to allow them to issue the new debt if and when the interest rate reaches around 2.3% in consultation with Belongia.
“Since county boards normally only meet once a month, and buyers will only hold their interest rate quotes for 24 hours, we have a little bit of a disjoint there, so I suggested that we do a parameters resolution,” Belongia said, adding they still believe they’ll be able to deliver about $600,000 in interest savings.
The resolution passed the County Board unanimously.