The Carroll County Board of Supervisors approved a resolution this (Wednesday) afternoon that is expected to save taxpayers over $280,000 by issuing General Obligation (GO) refunding bonds for the Iowa Statewide Interoperable Communications System (ISICS) project. D.A. Davidson Public Finance Banker, Nathan Summers, joined the supervisors via Zoom to review the bids the county received.
Initially, the supervisors had entered into a lease agreement with Motorola for the ISICS project. However, Summer recommended paying off the lease agreement early and paying for the project using bonds after interest rates in the market dropped significantly. Summers says the county will be saving taxpayers hundreds of thousands of dollars by making the switch.
Summers adds the true interest rate for the bonds is at 0.71 percent and recognizes the supervisors for the county’s good credit.
Prior to voting on the bond approval resolution, Supervisor, Neil Bock, questioned why there was a $40,000 increase to its par amount. According to Summers, this is a result of shifts in the cost of issuance, underwriter’s discount, premium amounts and other similar factors. The board voted unanimously to approve the bond resolution. The county will issue those bonds Oct. 14 to pay off the remaining balance of the Motorola lease on Oct. 15.
