Refinancing saves Idaho taxpayers millions

BOISE, Idaho (KIFI/KIDK)-Idaho State Treasurer Julie Ellsworth says refinancing efforts by the Idaho Bond Bank Authority (IBBA) will save taxpayers $9.3 million.

The IBBA closed a bond issue to refinance outstanding loans that was intended to lower future debt service costs.

Ellsworth said, “I am pleased with the overall results of the IBBA work.  Interest rates were near historical lows and investor demand was high for such a strong credit quality, resulting in Present Value Savings of approximately $9.3 million or an 18.5% reduction in the refunded debt.” 

Ellsworth said two of the big winners in the action included Caribou and Lemhi Counties, which had long-term bonds on the books. The Lemhi County refinancing will save its taxpayers about $399,000.

Caribou County Commissioner, Bryce Somsen, said “Caribou County had about 12 more years on a bond for our county jail that was built 20 years ago. When we found out we could save property taxpayers over $430,000 dollars by refinancing, we were thrilled.” The IBBA was created by the Idaho Legislature in 2001 to operate under the Treasurer’s Office.

The IBBA was created by the Idaho Legislature in 2001 to operate under the Treasurer’s Office.