Bonds to be refinanced to cut budget deficit

Refinancing its 2008 economic development bonds will be one part of the Jackson County Board of Commissioners’ efforts to address an anticipated $3.3 million shortfall in the 2010 budget.


In a called meeting Monday, the BOC agreed to refinance the bonds through Merchant Capital. The action will save the county approximately $2.6 million.

Specifics on the deal will be decided in the next week as county leaders determine exactly how much of the bond revenue to refinance.

The vote to refinance the bonds was 4-1 with commissioner Tom Crow casting the only dissenting vote. Crow said he is not opposed to refinancing the bonds, but he believes the county should seek bids from other firms.

Merchant Capital is the current service provider on these bonds. Their fee will be $3.15 per $1,000.

Finance director John Hulsey said refinancing the bonds is “imperative to close the budget gap.” Hulsey told the BOC at an earlier meeting that he is submitting a 2010 budget that increases spending by 1.6 percent to $38.2 million. But that amount is $3.3 million more than the county’s projected revenue for next year.

Hulsey said that operating budgets across the county had been cut during 2009 and that the only area left to cut county spending is in payroll and benefits, or to implement furlough days.

The 2010 county budget will be adopted in the coming weeks and the tax rate set for next year.

Other Business
In other business at Monday’s hour-long meeting, the BOC:

•agreed to form a second three-member board of equalization due to the increase in the number of appeals. Approximately 1,200 appeals have been filed on property tax assessments. The board will also have three alternatives. The Grand Jury appoints representatives to the board of equalization.

•agreed to write a letter in support of the Tree House, a children’s advocacy program, in its efforts to seek a grant.