Montgomery County last week announced the successful sale of $46,100,000 of revenue bonds to refund two series of outstanding Alcohol Beverage Services (ABS) bonds. This sale saved the County approximately 16 percent over the original cost of the bonds, which equals nearly $8 million in savings.
“This is great news for the people of Montgomery County, and I want to thank Mike Coveyou and the Department of Finance for their guidance and expertise,” said County Executive Marc Elrich. “My administration has remained laser-focused on being good stewards of the taxpayer’s money, whether it is County budget or how we invest taxpayer money.”
The proceeds from the bond sale will be used to refund 2011 and 2013 bonds that were issued to finance and refinance the acquisition, construction, and equipping of certain public facilities and numerous transportation projects.
“I am proud of the work of the Department of Finance,” said Finance Department Director Michael Coveyou. “Our work is not glamorous, but it is extremely important. I am honored to work with a team of professionals who understands that taxpayers are who they work for. Our success enables the County to provide a better quality of life for people who live and work here. This is what drives our work every day.”
According to a County press release:
“Earlier this fiscal year the County’s AAA bond rating was reaffirmed, and the rating agencies commented on our strong financial management,” said County Executive Elrich. “Today’s bond sale closing is yet another example of how my administration is effectively managing the finances of this County.”
The sale was in two series, $15.895 million tax exempt Series A, and $30.205 million taxable Series B. There were nine bids for the tax-exempt Series A bonds, and eight bids for the taxable Series B bonds. The combined all-in true interest cost was 1.33 percent, and this provided net present value savings of nearly 16 percent ($7.8 million) compared to the bonds that were refunded. The winning bidder for the Series A tax exempt bonds was BNY Mellon Capital Markets, and the winning bidder for the taxable Series B bonds was Raymond James & Associates Inc.