From the Madison County Finance Department –

On January 3, 2020, Jimmy Harris, mayor of Madison County, along with the members of the County Commission, refinanced some of the County’s outstanding bonds to a lower interest rate to save money.

County Finance Director Karen Bell said “the refinancing provides significant savings for the County by reducing the interest to be paid on one of the County’s outstanding bonds to a lower interest rate.”

The County, served as the bond issuer, and after receiving nine bids from national underwriters was able to refinance its 2010 General Obligation Bonds from a 3.34 percent tax-exempt interest rate to a lower 1.18 percent fixed tax-exempt interest rate.

The refinancing is expected to provide over $300,000 of interest savings for the County through 2023.

The savings were better than originally projected, due primarily to timing the refinancing at a point where there was a reduction in interest rates and the proper structuring of the bond offering.

Bell said the savings will help meet some of the annual needs of the County as it continues to provide quality services for residents and businesses located in Madison County.

The County was also evaluated by Moody’s rating agency as part of the refinancing, and received an affirmation of the County’s “Aa2” bond rating. The rating of “Aa2” reflected the County’s sound financial position and regionally significant economic base. Issuers rated “Aa” by Moody’s Rating Agency are considered to be of high quality and very low credit risk.

The County’s bond rating expands the number and type of investors willing to invest in the County’s bonds and ultimately results in lower interest rates and potentially interest savings for Madison County.

County Finance Director Bell also said she “will continue to work with the County Mayor and County Commission to identify ways to save money on other outstanding bonds in the future.”

(PHOTO: Karen Bell)

David Thomas, Twitter – @DavidThomasWNWS
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