St. Mary’s County Commissioners authorized the refunding of existing county bonds on Tuesday, an action that will save St. Mary’s County’s citizens slightly less than $400,000 in debt service expense.
Similar to a refinancing, the savings are due to a new rate of 2.4 percent. The due dates for repayment of these 1997 bonds remain the same, but the amount of the payments in FY2008, FY2009, and FY2010 is significantly less than the original.
“We must finance selected capital improvements needed by our community,” explained Jack Russell, president, Board of County Commissioners. “So, this action will result in real savings as we prepare careful budgets for our growing community.”
Bonds finance capital improvements such as schools, roads, parks and general county facilities. Low rates reflect the current market as well as the high credit ratings awarded to St. Mary’s County by bond rating agencies.