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Executive Kittleman announces successful annual bond sale; savings to taxpayers of $2.3 million

March 17, 2016

Media Contacts:
Andy Barth, Press Secretary, 410-313-2132 (o), 410-303-2039 (c)
Stan Milesky, Director, Department of Finance, 410-313-2195

ELLICOTT CITY, MD – Howard County conducted its annual bond sale this week offering both Consolidated Public Improvement Bonds (CPI) and Metropolitan District Bonds via competitive bidding. In large part due to the County’s Triple-A credit rating, its bonds are highly valued in the marketplace, and in all, 10 bidders made offers to purchase the bonds. The County’s Triple-A rating was recently affirmed by all three bond rating agencies.

“Despite limited revenue growth, we’ve been able to make budget decisions that are sustainable and enable us to maximize taxpayer dollars by getting very low interest rates for our bonds,” said Howard County Executive Allan H. Kittleman. “This means county taxpayers will pay less for needed capital improvements and to improve our infrastructure.” Kittleman’s $331 million Fiscal Year 2016 Capital Budget included funding for school construction and significant investments in public safety, parks and infrastructure projects such as replacing aging water and sewer service.

County Finance Director Stan Milesky added, “There is a second piece of good news in this sale. By selling refunding bonds on previously issued debt, we will reduce the long-term interest cost to county taxpayers by $2.3 million.”

The bond sale exceeded the County’s pre-sale projections and included:

  • An accepted offer to purchase $96,040,000 in CPI Project and Refunding Series A Bonds (which included a $74,760,000 new money issuance and $21,280,000 refunding issuance) from Bank of America Merrill Lynch at a True Interest Cost of 2.51 percent;
  • An accepted offer to purchase $1,730,000 in CPI Series B Bonds from Raymond James & Associates, Inc. at a True Interest Cost of 1.97 percent;
  • An accepted offer to purchase $26,190,000 in Metropolitan District Project and Refunding Bonds (used to finance water and sewer system improvements, which included a $21,720,000 new money issuance and a $4,470,000 refunding issuance) by Morgan Stanley & Co. LLC at a True Interest Cost of 3.06 percent.

Now that it has accepted these offers, the County expects to close on the bond sale later this month.

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