GAINESVILLE – If there is a silver lining to the gray storm cloud called the plummeting stock market, Hall County might be in the right place at the right time to take advantage of it.
Hall County Commissioners look to approve a resolution Thursday evening authorizing the installment sale of a new issuance of general obligation bonds to replace previously issued bonds carrying a higher and variable interest rate.
Gainesville attorney Tread Syfan explained the plan to commissioners at their work session Monday, saying: “As you may recall on February 12 the commission passed a resolution approving the issuance of bonds through the Gainesville and Hall County Development Authority to refund the…2013 sewer plant bonds and the 2009 State Patrol post bonds.”
Syfan explained the resolution before the commission for its consideration on Thursday. “What this resolution does is set the actual interest rates and principle payments on the bonds.”
Syfan said the specific numbers would be determined Thursday morning before the voting session. He suggested that the timing of the proposed bond sale might benefit the county.
“As you may know…the (bond) interest rates have been trending down as the stock market has gone down. As people come out of stocks they go into bonds, creating more demand which drives down the rates,” Syfan explained. “So that’s good for the county in terms of timing for this financing.”
Syfan said interest rates around 2-percent were possible for the bond sale.
Hall County Financial Services Director Dena Bosten explained it this way after Monday’s work session: “The interest rates to borrow money are lower; so you’re not maybe getting as much return on an investment, but…as a borrower, you’re paying less interest.”
Hall County Public Information Officer Katie Crumley agreed. “It’s always good as the stock market moves up and down, if there’s an opportunity to get a better rate, to look at that and take advantage of that. And that’s what Hall County is doing.”
“And the other thing that we’re really benefitting from it is we’re getting a fixed rate, whereas, the current rates are variable,” Bosten added. “That’s actually the biggest benefit.”
