Garfield County Commissioners authorize purchase option, vote to pay certificates
March 13, 2012
The Garfield County Board of County Commissioners (BOCC) formalized plans March 12 to save $2.4 million in future interest payments. The BOCC approved a resolution to exercise a purchase option under a capital lease agreement to pay off Certificates of Participation (COPS) issued in 2001, used to finance the construction of the Garfield County Administration Building in Glenwood Springs and the Garfield County Road and Bridge District 2-3 Facility and administration office building on Hunter Mesa.
The total principal and interest remaining on the COPS is approximately $9.2 million, and is due to be paid off by December 2024. The cost of the payoff is approximately $6.8 million, which will be paid from the Garfield County Capital Fund, minus reserve funds totaling approximately $726,000.
Preliminary unaudited financial statements for 2011 show Garfield County continues to be on solid financial footing with a strong fund balance, and in an excellent financial position to complete the payoff.
In reference to the savings of $2.4 million in future interest payments the county would realize, Garfield County Commissioner Tom Jankovsky said, “Given the strong financial position the county holds, this is a good business decision.”
Chair of the BOCC, Commissioner John Martin, agreed. “This step allows us to take care of the past and will take us into the future well,” he said. “While we are clearing up this past indebtedness that helped us to increase our infrastructure, we are also assuring that we can take care of our future by removing this debt.”
“We take our stewardship of taxpayer monies very seriously. I believe early pay off of debt, when we are able to do so, demonstrates good fiscal responsibility” stated Commissioner Mike Samson. “If it saves us $2.4 million, I feel that is a good deal for the citizens of Garfield County.”
The BOCC was given the option to pay off the bonds on either April 16 or June 1, 2012. The BOCC authorized the Garfield County Finance Department to proceed with the redemption to take place on April 16, saving $42,000 in interest over the June payoff date.
Garfield County also has a second COPS series, issued in 2006, to finance the construction of the Garfield County Sheriff’s jail facility in Glenwood Springs. The total principal and interest remaining on this financing is approximately $11.2 million, which is expected to be paid off by December 2023. An option to redeem is not available until December 2014.
Attachments: RESOLUTION NO. 12-14; RESOLUTION EXERCISING PURCHASE OPTION UNDER CAPITAL PROJECTS LEASE PURCHASE AGREEMENT WITH NOTICE AND INSTRUCTION TO TRUSTEE AUTHORIZING REDEMPTION OF CERTIFICATE OF PARTICIPATION, SERIES 2001, AND NOTICE TO GARFIELD COUNTY FINANCE AUTHORITY
13Mar2012 – Garfield County Administrative Building
12Mar2012 – Garfield County Road & Bridge Administration Building
12Mar2012 – Garfield County Road & Bridge District 2-3 Facility