La Plata, MD – Just like homeowners will sometimes refinance their mortgage to get a better interest rate, Charles County Finance Director David Eicholtz said Tuesday, March 24 that the county does the same thing with their taxable and tax-exempt debt.
“Just today we refinanced some of our old debt,” Eicholtz noted. “Today we replaced the old debt with new debt. In doing so, we were able to save the county $1.3 million. Because of this, we will be able to get all of your needs satisfied without raising taxes or cutting expenses.”
Eicholtz said that refinancing the old debt at lower interest rates contributed to the savings.
“Based on the reaction of Mr. Eicholtz, I would assume that this is very good news,” Charles County Commissioner Vice President Ken Robinson [D – District 1] suggested.”
“That is correct,” Sam Ketterman of Davenport & Co. told the commissioners.
“This is awesome news,” Commissioner Debra Davis [D – District 2] added.
Ketterman stated that the county ended up with a lower tax on the tax-exempt, which will now carry through to 2029.
On the tax-exempt side of the table, Eicholtz pointed out there were 11 bids for the $21,635,000 debt, awarded to Janney Montgomery Scott.
Taxable debt was refinanced through 2023 and awarded to Sheryl Booth.
“We don’t want to tie up our resources,” Eicholtz said. “By refinancing old debt, we are balancing our needs with our resources.”
Contact Joseph Norris at joe.norris@thebaynet.com
