Home Finance Howard announces $200M bond sale at lowered rate

Howard announces $200M bond sale at lowered rate

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A total of $200,230,000 of Consolidated Public Improvement, Metropolitan District and refunding bonds were priced and have been sold by Howard via a competitive bidding process. The bonds are highly valued in the marketplace, in large part due to Howard County’s AAA credit rating, which was affirmed by all three bond rating agencies last month. The refunded bonds will save county taxpayers $1.9 million in interest payments.

“Though Howard County faces slower growth where we need to make tough financial decisions, we will continue to practice sound fiscal management and smart stewardship of taxpayer dollars,” said County Executive Calvin Ball. “Our successful bond sale means we can invest in important community projects, while respecting taxpayer dollars.”

“The annual bond sale replaces short term borrowing with multi-year financing to build and sustain infrastructure for citizens,” said Finance Director Janet Irvin. “This year’s very favorable rates enable the county to maintain a meaningful capital program.”

The bond sale exceeded the county’s pre-sale projections, primarily due to market conditions, with an interest rate that is nearly a half-percent lower than the previous year. The sale covered funding of:
● $18 million for the construction of Waverly and Hanover Elementary School
● $14.9 million for Howard Community College including the Nursing & Science Building
● $4.7 million for the Elkridge Library
● $12.7 million for road expansion
● $3.5 million for the relocation of Fire Station #1
● $38.5 million for Little Patuxent Water Reclamation Plant

Ball, in his $206.3 million fiscal 2020 Capital Budget proposal, included funding for new and expanded school buildings, the Ellicott City flood mitigation plan, facilities for senior residents, transportation improvements (including roads, bikeways, sidewalks, and bus stops), new fire stations, technology infrastructure and more.

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