As a result of last week’s reaffirmation of the county’s AAA bond ratings by all three major bond rating agencies, Frederick County Government received over $4.6 million in savings on a refinancing of some of its bond debt. This is over a million dollars more in savings than originally anticipated.
“Today’s negotiated sale of bonds went much better than anticipated, resulting in millions of dollars of savings for taxpayers,” commented County Executive Jan Gardner. “Good things are happening in Frederick County, as our conservative budgeting and vibrant economy has set us on the path for a very bright future with more schools, roads, libraries and parks all at considerable savings. This is great news for county residents.”
The county used a negotiated sale with a syndicate of J.P. Morgan Securities, LLC, Citigroup Global Markets, Inc. and M&T Securities, Inc., to issue $73,865,000 of tax exempt Refunding Bonds,
Series 2017A (2020 Crossover). The True Interest Cost on the issuance was 2.308 percent, for a percentage savings of 5.203 percent.
The debt service savings over the term of the bonds will be $4,648,451. The county’s initial projection for debt service savings was $3,575,201. The actual savings were $1,073,250 higher than
The AAA ratings reflect financial analysts’ confidence in the county government’s management and financial health. Moody’s, Fitch and Standard & Poor’s each reaffirmed their ratings late last week. In June 2016, for the first time, Frederick County joined the ranks of the elite few counties across the nation earning AAA stable ratings from every agency.
County Executive Gardner thanks county finance and budget staff for their outstanding work.
For additional information, contact Finance Division Director Lori Depies at 301-600-1117 or via e-mail at ldepies@FrederickCountyMD.gov.