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Columbiana County commissioners approved an early pay-off of one of the loans for construction of the Government Services Building, lowering the county's debt and saving money on the interest.
"That's good news for the county," Commissioner Mike Halleck said.
The Government Services Building houses the county Department of Job and Family Services, the Board of Elections, the Veterans Services Commission and the Ohio State University Extension Service.
When the building was constructed, the commissioners secured a bond to cover the costs, but then had to get a second bond to cover the cost overruns when the costs increased. The second bond or loan is the one being paid off for nearly $1.6 million.
"We have reduced the county debt substantially," Halleck said.
According to Halleck, the remaining loan for construction of the Government Services Building is "the only substantial debt that the county has left that is outside the realm of water and sewer."
"Our bond rating is the best it's been," he said.
County Auditor Nancy Gause Milliken said the note is callable effective Dec. 1 this year, meaning the county can pay off the principal and the interest accrued to the date of the payoff, creating a savings on interest by paying off the loan early. She said the county's bond counsel talked to Capital One and the company agreed to let the county pay it off early.
"I'm excited about getting this one paid off," Milliken said.
The original loan amount was $1,686,000, with payments last year totaling $65,000 for the principal and $56,730 for the interest. The interest rate was 3.5 percent. Milliken said the estimated total payoff is $1,586,730 for the principal, the interest up to the payoff date and the bond counsel fee. The original payoff year for the loan was supposed to be 2033.
"We've been able to set enough money aside every year to build up that debt service fund so we can pay it off," he said.
The county still owed $5,890,000 for the other loan for the building at the end of 2022, making payments of $150,000 for the principal and $127,578 for the interest last year. The interest rate was 4 percent. The original note amount was $7,405,000.
"We don't have a lot of debt," Milliken said.
There's still $1.2 million owed for the jail construction bond.
In other recent business, commissioners authorized the president of the board, Commissioner Roy Paparodis, to sign an application to apply for a grant from the Lead Safe Ohio Initiative. Columbiana County Development Director Tad Herold explained that a request for qualifications will be sent out for administrative services to oversee the program. The county can receive up to $897,000 to provide lead safe renovations, lead abatement, relocation assistance while lead work is being performed, equipment purchases and supportive services, according to an email Herold received about the program.
"This is very much a first step," he said regarding the application.
The commissioners also terminated contracts for public guardian Jacqueline Trimmer and the Salem Area Visiting Nurse Association for homemaker and home health aide services, at the recommendation of DJFS Director Rachel Ketterman. Apparently the providers are no longer providing the services.
Commissioner Tim Weigle announced the county Planning Commission will meet at 4 p.m. Tuesday.
Curt Braden, regional director of outreach for the Ohio Attorney General's Office, visited briefly with commissioners Wednesday, updating commissioners on the program for the collection and testing of shell casings from crime scenes. The closest location of the system, known as the National Integrated Ballistic Information Network, is located at the Ohio State Highway Patrol barracks in Warren.
mgreier@mojonews.com