The Letcher County Fiscal Court conducted the second reading of an ordinance to enter into a leasing arrangement with the Kentucky Association of Counties Leasing Trust for the purpose of refinancing the loan that was taken in the 1990s to renovate the Letcher County Courthouse. The reading came at a special called meeting held May 24.
The original renovation was financed by a loan through the U.S. Department of Agriculture. KACo told fiscal court members earlier that by refinancing they could not only retire the debt to the USDA, which has a number of strings attached, they could also lower the county’s interest rates from 4.75 percent to around 2.8 percent under current interest rates.
Documents show the principle amount of the loan will not exceed $3.5 million. The term rate will be for 14 years and the anticipated interest rate will be approximately 2.9 percent. The court cannot pay the entire loan off for 10 years and the rate will be locked in when the bond sale to pay for the loan is finalized.