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County sets public hearing for $3.4 million bond

Subhead
Aug. 3 meeting includes refinancing 2015 debt, saving $90,000
By
Mavis Fodness

Favorable interest rates are prompting the Rock County Commissioners to consider financing upcoming capital improvement projects through a general obligation bond.
If approved, the county would borrow $3.485 million at a potential interest rate of less than 2 percent.
A public hearing will take place Aug. 3 during the commissioners’ regularly scheduled meeting.
Details included in the five-year CIP plan will be presented along with bond finance specifics.
Commissioners received a preliminary look at their July 7 meeting.
“I think we have a very solid plan for the bonding portion and the financing over the next five years,” said County Administrator Kyle Oldre.
“We are not raising property taxes — we are continuing property taxes.”
Department heads identified $21.8 million in capital improvements, many of which can be completed through different revenue sources.
However, $2.5 million worth was identified as best afforded through a new 20-year bond.
“It ($21.8 million) is a huge number but if you think about it, $14 million is road and bridges, which comes from a different pot of money,” Oldre said.
Among the projects the bond could finance is the replacement of the HVAC (heating, air conditioning and ventilation) systems in the county-owned facilities.
The HVAC replacements are expected to cost $2.3 million and include the courthouse, veterans memorial, law enforcement center, library, highway department and human services building.
Five county departments have identified various equipment needs including Rock County Rural Water’s request for a $1.9 million water tower in Springwater Township.
The new bond includes refunding $910,000 from two previous bonds obtained in 2015. Both bonds are due to be paid in full in 2036.
When the 2015 bond amount is combined with the new general obligation bond, a $90,000 in savings is expected.
The new bond will have the same payment completion date as the previous bonds.
“We are reissuing for the same length of time to get that (the new bond) to be paid off in 2036,” Oldre said.
Rock County currently has $6.3 million in debt obligations.

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