The Nolan County Commissioners’ Court met in regular session on Monday, July 12.
The minutes from June 28, 29, 30, July 6 meetings were approved without revision.
A presentation from Government Capitol was given by Jake Lawrence regarding three bonds currently on the books. Lawrence is from a public finance company that does business with several ISDs in the area as well as RPMH and has been involved with Nolan County for many years.
Various topics of discussion related to the bonds were:
The three bonds would best combined into one tax exempt and bank qualified total, instead of non-bank qualified bonds. This differential would save the County $6,000.
The bonds are at present 7.21 percent interest. Anything above 5 percent is a strong return as the interest rate tends to fluctuate like the stock market. Debt service savings in 2022 will be a small payment in February. After 2028, there is a drop-off.
In sources and uses, the County should not be issuing bonds to create new projects but instead pay off old bonds and use treasurer’s notes to pay off bond holders.
The value of negative arbitrage is that bonds cannot be issued outside of February 2022...