The vote was unanimous Tuesday night when members of the Cache County Council passed a resolution approving the sale of $600,000 in Sales Tax Revenue Bonds that were issued in 2007.
Financial advisor Al Buxton of Zions Bank told the council he has been discussing the issue for some time with County Executive Craig Buttars and Cache County Fiscal Officer Cameron Jensen.
“We’ve determined that it makes financial sense to go ahead and move forward to refinancing the bonds. The current interest rate that the 2007 bonds have is 4%. What we anticipate, what we don’t know until we find a buyer for the bonds and lock in the interest rate, but what we anticipate is a new interest rate around 1.5-2%.”
Buxton said depending on how much the bonds are sold for, the county could end up with a gain of $400,000 over a six-year period. The council agreed the bond-selling process should be started and if everything works out the way they are hoping, a bond closing could come as early as the end of September.