Harrison commissioners refinance jail loan through USDA at lower rates

The Harrison County Commissioners made a move at their Feb. 11 meeting that would significantly lower their interest rates on their multi-million dollar jail loan. The original loan with Huntington Bank was set at 4.75% interest, but now they have moved to refinance that into two government loans through the United States Department of Agriculture.

Commissioner Dustin Corder read two resolutions, which were approved unanimously, to allow the board to transfer down to two USDA loans with interest rates of 3.25% on one loan for $3 million and 2.125% on the other loan for $6 million.

“This is authorizing the issuance of bonds in the amount of not to exceed $9 million for the purpose of constructing, furnishing, equipping and improving a justice center with related site improvements … and retiring notes previously issued for such purpose; and authorizing and approving related matters,” one resolution stated.

The board decided to issue bonds for retiring “Outstanding Notes” where they will be purchased by the U.S. Government, acting through the Rural Utilities Service within the USDA. Julia Wood of the USDA was present and recognized Clerk Misty Bailie calling her “indispensible” in assisting their office providing much information.

“And she’s always been pleasant and so good to deal with, especially with our master outlay sheets tracking every penny [and] she’s been wonderful,” Wood told the board.

Wood said the resolution covering the $3 million loan’s first payment would be approximately $135,084 and the second resolution was for the $6 million loan for an approximate annual payment of $224,172 stretching 40 years. Wood added that there was no penalty if the county wished to make a larger payment or pay one or both of those loans totaling $9 million off sooner.

“There’s no penalty for that,” she said.