Bertie banks savingsPublished 8:37am Tuesday, October 23, 2012
WINDSOR – Bertie County will save money by refinancing the $2.2 million left to pay on the Social Services building.
During their regular meeting Oct. 15, the Bertie County Commissioners approved a measure to refinance the loan with BB&T.
Ted Cole of Davenport Associates appeared before the board with the financial information. He said as the county looks to build a new high school, Davenport’s financial consultants looked at all the debt already accrued by the county.
He said the only one which made sense to refinance was the Social Services building, which is located on Jasper Bazemore Avenue in Windsor and was completed in 2008.
“We requested BB&T present a proposal to lower the interest rate and they did,” Cole said.
The building was financed at 3.93 percent, but will now be changed to 2.38 percent. The only cost to the county will be a one-half of one percent penalty which was payable at closing.
“That will be the only cost,” Cole said. “There are no fees from BB&T or from Davenport.”
The fee, which amounted to $11,000, caused the county to pay more during the current 2012-13 budget year, but will significantly lower the payments over the remaining term of the loan, which will be paid in full in 2022.
Bertie County Manager Morris Rascoe said he had discussed the $11,000 fee with County Finance Officer William Roberson and the two felt it could be absorbed without dipping into fund balance.
Rascoe said there have been position vacancies and that some funds have not been spent while they were being filled. Those funds can be transferred to keep from taking the $11,000 from fund balance.
The total savings for Bertie County will be $142,632.
Commission Vice Chairman J. Wallace Perry made the motion to approve the refinancing with Commissioner Charles L. Smith offering a second. It passed without objection.