Frederick County this week sold $154.5 million in new tax-exempt bonds at a historically low interest rate, a direct reflection of the County’s recent AAA credit rating from all three major financial rating agencies.
The tax-exempt bonds sold at an interest rate of 1.57 percent — the lowest rate in County history. In addition, the County refinanced $30.9 million of 2013 and 2016A taxable bonds at an interest rate of 1.82 percent, which will save taxpayers over $680,000.
“Today’s interest rate is a historic low,” County Executive Gardner said. “The savings give us money to build another fire station or branch library or to improve a road. Frederick County can be proud that investors appreciate the strength of our economy and the excellent management of our county government and finances. The New York rating agencies spoke of our excellent management and expressed their confidence in us, and that has paid off with today’s incredibly low interest rate.”
According to a County press release:
Seven bids were received for tax-exempt bonds, with B of A Securities, the successful bidder at a true interest rate of 1.57 percent. Twelve bids also were received for the taxable bonds, with Morgan Stanley & Co. LLC the successful bidder with an interest rate of 1.82 percent. This rate means taxpayers will save $680,313 over the remaining term of the taxable bonds.