Officials attribute that to the county’s strong financial help.
Frederick, Md (KM) It was a pleasant surprise for Frederick County. Officials say the refinancing of a bond debt which occurred on Wednesday saved the county about $2.6-million, which is just over $1-million more than originally projected.
“As I said in my annual report, Frederick County’s strong financial outlook means real savings for our residents. We saw phenomenal savings from this negotiated sale of refinance bonds, resulting in millions of dollars in savings for the taxpayers,” says County Executive Jan Gardner, in a statement. “Our long term conservative approach to budgeting and strong management of our county government has saved taxpayers substantial money. I am proud to be protecting the taxpayers’ money and delivering savings.”
Officials say the county used a negotiated sale with JP Morgan Securities, LLC, to issue $36,580,000 of tax-exempt Refinancing Bonds, Series 2017B. The True Interest Cost on the issuance was 2.029% for a percentage savings of 7.211%.
The county says the debt service savings over the term of the bonds is $2,637,940. The initial projection was $1,615,246. The actual savings was $1,022,694 higher than originally projected.
The county is also one of a handful in the country which has AAA bond ratings from all three of the major bond rating agencies in the nation: Moody’s Investors Service, Fitch Ratings and Standard and Poor.
By Kevin McManus