County Executive Leopold Announces Favorable Interest Rates Secured on Bond Sale
New rate saves $850,000
Annapolis (April 8, 2010) - County Executive John R. Leopold announced today that $186 million in general obligation bonds have been sold at a combined interest rate of 3.24 percent, which means significant savings for taxpayers.
"In this economy it was difficult to predict what kind of rate the County would receive given the scarcity of funds in the financial sector, but we did very well because the bond rating agencies have confidence in our financial planning," County Executive Leopold said. "The combination of favorable bond ratings and low interest rates bodes well for our capital program."
Both tax exempt bonds and taxable bonds were issued with the intent to obtain the lowest interest expense for the County. Several underwriters were selected to achieve this result. The sale took place on March 24. Selling the same amount of bonds at last year’s rate would have incurred $850,000 more in interest expense in year one of the bonds.
The bond sale comes after Standard & Poors announced that Anne Arundel County would be rated AAA for the fourth consecutive year. Moody’s Investors Service rated the County Aa1, which is the same as last year, and Fitch Ratings slightly downgraded the County's rating from AA+ to AA. The Bond sale in 2009 resulted in an interest rate of 3.69 percent.