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County discusses voiding Gross Receipts Tax Bonds

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The McKinley County Board of Commissioners discussed voiding the two oldest Gross Receipts Tax Bonds for the county during their July 14 meeting.

The board also discussed giving County Manager Anthony Dimas Jr. the authority to take the necessary steps to annul the two bonds, totaling over $5.3 million, as well as to amend the budget afterward.

This item had been previously discussed at several meetings, Dimas said.

“One bond is from 2010 for the complex where the Magistrate Court is, where the outstanding principal is $3.8 million,” he said. “Then there is a 2014 bond for the energy project we did for the buildings to upgrade to new energy and efficiency, where the total is $1.3 million.”

The remaining costs in the bond total come from appropriated interest. Dimas said the annulment of the bonds would then be included in the final budget.

“Once that money is available, we will pay this off sometime in the first week of September,” he said. “That’s going to free up our bonding capacity for our next projects.”

Commissioner Bill Lee wanted clarification on the energy efficiency project. Specifically, he asked if the county’s contractor would be able to meet the required standards and savings for the project if the GRT bond is voided.

“We’re just paying off the bond amount, but they’re obligated to their agreement with us [for the project],” Dimas said.

With no other discussion, the board motioned to approve the item and annul the two oldest county GRT bonds. Lee voiced his enthusiasm to move forward with a “resounding yes.”

The item passed with a 3-0 vote.

By Cody Begaye
Sun Correspondent