Washington County moving forward with refinancing $11 million in bonds for hospital.

The Washington County Board of Supervisors is making moves to refinance approximately $11 million in bonds for the Washington County Hospital and Clinics, a move that could save $600,000 in interest payments.

On Tuesday morning, the board set a July 6 public hearing on refinancing up to $11 million in general obligation bonds for WCHC.

County Auditor Dan Widmer explained that the plan is to refinance bonds that were previously refinanced in December 2015 and January 2016.

“About four or five years ago, the county assisted the hospital in refinancing their bonds due to lower interest rates,” Widmer said. “It allowed the hospital to realize some savings.”

At that time, the county refinanced nearly $15 million in revenue bonds for the hospital.

In 2005, WCHC issued revenue bonds to pay for the construction of the new hospital at an interest rate of 5.5 percent.

Ten years later, WCHC approached the county to seek assistance in refinancing the revenue bonds to lower interest general obligation bonds, a move saved the hospital more than $6 million in interest. Those bonds were issued at 2.48 percent.

Widmer said that they are proposing the same process.

“Due to lower interest rates, more savings is available to the hospital,” he said. “We don’t know exactly what the new interest rate will be. That hasn’t been locked in yet.”

Scott Crist of UMB Bank, which handled the previous bond refinancing said that interest rates have hit a historic low.

Crist added that the hospital will save approximately $600,000 in interest by refinancing the bonds now.

“There would be no change in structure or term,” he said.

Widmer said that there are nine years remaining on the term of the bonds.

He added that he hopes to have the refinancing wrapped up by the end of July.