Bond refinancing projected to save Williamson County $9.4 million

Williamson County Commissioners Court authorized the county auditor to refinance $132 million in road bonds Feb. 7, a move that is expected to save the county $9.4 million over the life of the bonds due to lower interest rates.

County Auditor David Flores said interest rates have dropped and the county has taken advantage of this by planning to refinance bonds.

The county is anticipating a net interest rate of 2.45 percent over the duration of the bonds, down from the 4 percent to 5 percent interest rate the bonds currently have. The lifetime of the bonds vary from 12 to 15 years.

The AAA bond rating the county received from credit rating agencies Fitch Ratings and Standard & Poor's have contributed to Williamson County obtaining lower interest rates.

In November, Flores said the county refinanced $34 million in road bonds, which is projected to save the county $3 million.

Flores said at the Feb. 7 regular meeting the commissioners gave the auditor's office the flexibility to refinance additional debt if needed in the next 12 months.

"If we recognize other bonds that we have outstanding and the rate falls to where we have the advantage, I have the court's authorization to move forward with that," he said.