Refunded Bonds To Save HoCo Taxpayers $6.2M In Interest

Ellicott City MD

09 October, 2020

12:54 PM

Description

HOWARD COUNTY, MD — A total of $109,185,000 of refunding bonds were sold this week for Howard County. The refunded bonds will save county taxpayers $6.2 million in interest payments and generated $2.4 million in savings for the water and sewer fund. This year, Howard County saw considerable savings compared to previous years, with an overall 1.68 percent interest rate and savings of $8.6 million. These bonds are highly valued in the marketplace in large part due to the county's AAA credit rating, which was affirmed by all three bond rating agencies last month. Additionally, Howard County was awarded the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) of the United States and Canada. The professional group recently honored the county for excellence in following generally accepted accounting principles in the "Comprehensive Annual Financial Report" (CAFR) submission for fiscal year 2019. "Though Howard County and other jurisdictions are facing unprecedented financial challenges amid the COVID-19 response, we are continuing to practice sound fiscal management and smart stewardship of taxpayer dollars, generating more than $8 million in savings with this recent bond sale," said Howard County Executive Calvin Ball. "For more than four decades, our professional finance staff has upheld the highest accounting standards to earn this recognition from their peers. Howard County's commitment to sound fiscal reporting and transparency for government spending remains second to none." In April, Howard County was one of just 46 counties among more than 3,000 in the U.S. to earn a AAA credit rating from all three bond ratings agencies. Howard County has maintained a AAA credit rating for 23 consecutive years. Fitch Ratings, Moody's Investor Services and Standard & Poor's all noted Howard County's strong economy and financial flexibility, and even amid the current coronavirus pandemic and changing economic conditions, all three awarded a stable outlook with the ratings.