DeWitt County bond refinancing could save $8,000 a year
July 10, 2010 at 2:10 a.m.
NEW BANK COMING TO CUERO
First National Bank of Shiner is opening a branch in Cuero.
The new bank, named Cuero National Bank, will be at 1708 N. Esplanade St. A temporary modular building will open by the end of the month until construction on a permanent building can be completed near the first of the year. Services include full deposit, loan services and a range of personal and business products. David Kleinecke will serve as vice president and branch manager and the bank will employ five.
CUERO - DeWitt County could save about $8,000 a year during the next 13 years when it refinances certificates of obligations issued in 2003.
Anne Burger Entrekin of First Southwest, the county's financial advisor, informed county commissioners late last month that refunding or refinancing $2,815,000 of the original $3.5 million issued could mean substantial savings over the remaining life of the COs. The estimated annual savings would be $7,701.36 or an estimated total of $82,679.69.
"With the market like it is, we can refinance at a lower rate," said Peggy Ledbetter, DeWitt County treasurer. "The commissioners gave them some parameters. It won't be worth it if you don't get a certain amount of savings. They have to watch the market."
The bonds were originally issued an interest rate range of 3.7 percent to 4.65 percent and the new parameters issued by the commissioners court are 2 percent to 4.25 percent.
The $3.5 million in certificates of obligation were issued in 2003 in part to establish a courthouse annex that was needed during renovation of the county courthouse.
The bonds' maturity date of Sept. 2023 won't change.
"It's always good to save money," Ledbetter said.