TAVARES — The Lake County Board of County Commissioners signed the necessary paperwork this week to refinance its bond debt, which will result in an estimated savings of $4 million to the county over the next 10 years.
Proposals were sought from 30 financial institutions in order to get the best refinance offers.
The county closed on a $20.95 million Direct Placement Bank Loan with Citizens First Bank of Leesburg, a locally-owned and operated financial institution. This bank loan refunds the outstanding Limited General Obligation Bonds that were issued in 2007.
Citizens First Bank provided a combination of the best fixed interest rate of 2.22 percent and no prepayment penalty. This resulted in a net present value savings of more than $1.7 million, or 9 percent of the refunded bonds par amount.
The county simultaneously closed on a $25.8 million Capital Improvement Revenue Refunding Bond with Jacksonville-based Regions Bank. The final numbers resulted in net present value savings of nearly $2.2 million, or 9.2 percent of the refunded bonds par amount.
“The county’s initiative to seek bond refinancing is a prime example of the ways commissioners and staff work together with local businesses to help save taxpayer dollars,” said Chairman Jimmy Conner. “Refinancing our bond debt allows Lake County to continue practicing fiscal conservatism while offering the highest level of service to our citizens.”