County Executive Leopold Announces Bond Sale that Saved Taxpayers $3.5 Million
Low interest rate achieved in part from strong bond rating
Annapolis (August 17, 2009) - County Executive John R. Leopold today announced that a recent sale of $53.3 million in general obligation bonds will result in a reduction of future interest payments totaling $3.5 million to Anne Arundel County.
"This bond sale was like refinancing the mortgage on your house, and our strong bond rating - including a AAA rating from Standard & Poors - helped us get a good rate that means real savings," County Executive Leopold said. "This refund will help both our general fund and our construction budget in these trying budget times."
The bonds were sold in July to refund Consolidated General Improvement and Water and Sewer bonds issued in 1995 and 1999 at an interest rate of 2.81 percent. Taxpayers benefit from the low interest rate received from the competitive bidding process.
Morgan Keegan & Co., Inc. was the winning bidder. The bond sale comes after Standard & Poors, Fitch Ratings and Moody’s Investors Service all reported that Anne Arundel County will maintain its bond ratings, including AAA from Standard & Poors.