Savings make better sense
Have you ever read that a local or county government or one of its affiliated units claim that it saved X amount of dollars by refinancing a loan? It isn’t true. Think about it! Why did that government agency have to borrow money in the first place? The answer is simple. It didn’t collect enough revenue in advance for future expensive projects, and the closing costs for the financial and legal professionals, as well as insurance and other costs can run into the hundred of thousands of dollars. So there are only expenses, not savings.
Most elected or appointed officials prefer not to raise taxes or rates for government services unnecessarily. However, it is better, financially, to raise rates or taxes gradually so that savings are available for expensive future projects, or for fairer taxation for revenue purposes. Borrowing or refinancing should never be necessary, Savings make better sense!
DAVID L. FAUST