Bowie County commissioners take finance saving measures by seeking lower interest rate

NEW BOSTON. Texas - Bowie County Commissioners are looking at saving money by refinancing bonds used to help widen a nine-mile stretch of U.S. Highway 82, between New Boston and DeKalb.

Commissioners agreed Monday to allow the county to consider using Unlimited Tax Refunding Bonds to secure a lower interest rate.

Bowie County Auditor Jennifer Beckett told commissioners that the county might be able to save more than $424,000 in interest payment on $4 million in bonds secured in 2012 for the U.S. Highway 82 widening project. The life of the bonds is set to be paid off sometime between 2028 and 2032.

The Texas Department of Transportation finished the widening project near the end of 2015.

Bowie County Judge Bobby Howell said it might be best for the county to go ahead and save as much revenue as it can, in light of a looming potential local economic downturn caused by COVID-19.

"We can go ahead and try to save money on interest payments even if it means having to extend bond payment obligations in the long run," Howell said.

Following some further discussion, the Commissioners Court recommended refinancing the $4 million bond payoff obligation in order to save money more immediately rather than have to dip into the county's cash reserves, should there be a shortage in the county's retail sales tax collection later this year, following COVID pandemic.

In other business, commissioners approved a lease purchase agreement with BancorpSouth Equipment Finance, which is a division of the bank, based in Hattiesburg, Miss. The agreement's aim is to help the county finance the purchase of three trucks for the Precinct 4 Road Department.

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