The report to the supervisors by county finance director Barbara Horlacher at its Jan. 2, meeting illustrated the importance of the belated refinancing. The interest rate on the refinanced bonds was even lower than anticipated coming in at 2.7%.
The savings are therefore even more substantial than previously reported. Instead of saving $1.2 million in FY13, they will actually save $1.688 million. In FY14 they will save $489,110 and in all subsequent years, $384,369. This is, of course, excellent news for the county, but it also raises questions about the upcoming budget and the tax rate in addition to how the $1.688 million will be allocated in the existing budget for this FY.
It is interesting to note that the Fluvanna Taxpayers Association, to my knowledge, never urged the county to undertake this refinancing – one of the most effective cost saving actions possible for Fluvanna. The FTA was more interested in suing the county’s previous finance advisor than in actually saving money by refinancing the school bonds.
The refinancing has saved Fluvanna taxpayers millions of dollars over the life of the bonds. I had urged refinancing the school bonds in one of the last BOS meetings I chaired in December 2009, and I am glad to see that the county has finally taken advantage of this option.
