Montgomery County Officials are refinancing part of their debt.
They completed a sale of almost 15 million 500,000 dollars in bonds last week and most of the money generated will be used to retire obligations the county issued ten years at a higher interest rate. County Financial Consultant Dan Kozloff told the Commissioners the two bond issues will save taxpayers some big bucks over the long term.
“On a net present value savings we achieved 1.7 million dollars in debt service savings, that’s 15 percent. We’re very happy with that and on a year by year basis. It results in about 130,000 in savings a year for the next 20 years.”
Kozloff notes that the bond sale generated a lot of excitement among underwriters with seven banks submitting bids for the bonds. The winning one came from Janney Montgomery Scott at an interest rate just over two-point seven percent.