Taking advantage of lower interest rates and other factors, the Fayette County Commission voted last week to refinance the county’s justice center and jail expansion.
In doing so, the county will see a $2.6 million savings this year along with another $1 million plus over the next three fiscal years, the commission was told Thursday night.
Part of the savings is being generated by the county’s ability to pay $8 million towards the principal. Those funds were being withheld by the county to finish off the third floor of the courthouse, but it has since been determined that those funds are not needed, officials said.
The new financing arrangement reduces the total debt service for the county by just over $15 million over the life of the loan, said County Finance Director Mary Holland.
The outstanding principal on the loan is just shy of $48 million, according to county records.
The motion to refinance the bonds was unanimous.
