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OLIVIA — A decision to refinance $1.425 million in general obligation bonds was rewarded with a true interest rate of less than 1 percent.

The Renville County Board of Commissioners on Tuesday awarded the low bid with a true interest rate of 0.9711 percent to United Bankers’ Bank.

The county will realize an estimated savings of $210,858.19 over the remainder of the issue, or a present value savings calculated at $175,690.20, according to Myron Knutson, Public Financial Management.

There were eight firms bidding to re-finance the 2005 series bonds. A competitive financial market and a decision to reduce the length of the remaining terms of the bond series to six years in place of 12 were major factors in the reduced interest rate, according to Knutson.

The county also benefited greatly by recently obtaining an Aa2 bond rating from Moody’s Investors Service, he noted.

Moody’s cited the county for strong financial operations with ample reserves, strong agricultural land valuations, and self-supporting enterprise and operating funds.

The county’s weaknesses, according to Moody’s, is a declining population and below average socioeconomic indices.

David Little
David Little covers the Willmar City Council, Willmar Municipal Utilities and other city news.
(320) 235-1150