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Tuesday, July 15, 2008
Atlantic County Refinances Bonds to Save Nearly $.5 Million
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Atlantic County is refinancing $9.525 million in general improvement bonds that will save the county and its taxpayers $476,507. The county is scheduled to close on July 31, 2008 on the refinancing of the 2000 Special Services School District bonds.
"While families struggle to make ends meet and state government looks to slash aid to local government, I am pleased to announce that Atlantic County has successfully achieved a cost savings of nearly a half million dollars through the refinancing of these bonds," stated County Executive Dennis Levinson.
Levinson explained that the county was able to take advantage of the current low interest rates to lock-in at a savings of 5%, well above the 3% savings threshold for bond refinancing required by the Local Finance Board.
The Board of Freeholders adopted a Bond Refunding Ordinance on April 15, 2008 that allowed the county to proceed with the refinancing of the Special Services School District bonds. The ordinance also authorizes the refinancing of an additional $20.8 million in 2002 Criminal Court Complex bonds should the county and its financial advisors successfully negotiate a savings on those bonds that meets or exceeds the required 3% benchmark.
"We will continue to review the market conditions for interest rates on our refunding bonds that will satisfy the Local Finance Board requirements and save tax dollars," said Levinson.
The county executive commended County Treasuer Jane Lugo and her staff for their efforts in negotiating this cost-savings measure.
"Jane assumed the position of treasurer two months ago and has provided a seamless transition. Our taxpayers can feel assured that we will continue to operate with fiscal prudency."
Lugo is the county's Chief Financial Officer and filled the position of treasurer vacated by the retirement of George Boileau in May. |
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