For Further Information Contact:
William R. Steinhaus, County Executive
Timing is Everything
Recent Bond Sale Nets County More than $527,000 in savings
Poughkeepsie… Dutchess County Executive William R. Steinhaus has announced Dutchess County government will realize $46,000 in additional savings next year from its recent refinancing of existing Dutchess County bonds in 2012. Total savings for county property taxpayers over the next ten years as a result of the refinancing total more than $527,000, well above the $470,000 originally estimated, due to an improved interest rate environment.
Dutchess County government recently refinanced various Public Improvement bonds, originally issued in 2003 at interest rates averaging 3.6% to fund county road construction, public works equipment as well the Central Dutchess Water Transmission Line and other projects. The County also issued new bonds to fund various capital improvement projects including road and bridge improvements, energy efficiencies, building renovations and replacement vehicles.
“Our impressive bond rating, coupled with opportune market timing, has delivered significant savings to county property taxpayers,” said County Executive Steinhaus. “Thanks to the work of our strong finance team we have here in county government, including our Commissioner of Finance Pamela Barrack and Budget Director Valerie Sommerville, we continue our record of sound financial and budget management practices.”
Moody’s Investor Services had reaffirmed Dutchess County government’s strong Aa1 bond rating in advance of the bond issuance, making the bonds very attractive to investors in the marketplace. Moody’s high rating demonstrates Dutchess County government continues to be well managed despite the difficult economy. Moody’s also noted the continued efforts to contain expenditure growth through program and staff reductions. There are only two counties statewide with higher bond ratings than Dutchess County, which places Dutchess in the very top tier of financially well managed county governments.
Market timing was significant in the higher than estimated savings. Original savings projections were estimated at $470,000 in late summer and through October. However, actual savings are predicated on the market at the time the transaction take place. As a result in the volatility in the market over the last several weeks, the County’s financial advisors had lowered the savings projection down to $385,000. Market timing turned out far more favorable than anticipated, however. The County’s bond sale was held on November 30th, a busy day on Wall Street, where the Dow Jones Industrial Average closed with its seventh-largest one-day point gain on record. Final closing on the bond refinancing is scheduled for December 22nd.
“Timing is everything and you have to be ready to take advantage of opportunities when they arise. The work we do all year round to provide strong fiscal stewardship enabled us to keep our Aa1 bond rating and take advantage of great market timing for big savings for our taxpayers,” concluded County Executive Steinhaus.
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