Carroll County government is doing what many homeowners have done lately: It?s refinancing its debt to get a lower interest rate and save about $1 million in the process.
The commissioners this week refinanced almost $24 million in debt from bonds sold in 1995, 1998 and 2000, saving taxpayers $1.01 million.
“In the total scheme of things, it?s not a lot of money, and more than likely it is not going to show up in the property tax bill of any individual taxpayer because the county has so many needs,” said Sam Ketterman, senior vice president of Davenport & Co. of Towson, the county?s financial adviser.
“The county?s capital program is growing through the next five years, and in 2008 will need $185 million for various capital projects such as public works, education and open space,” Ketterman said.
“This [refinancing] conceivably reduces the dependence on other revenue going forward.”
County Comptroller Robert Burk did not return calls seeking comment.
The county?s better-than-average credit rating also helped it get a lower interest rate on the new bonds. PNC Capital Markets was the winning bidder to sell the $23.9 million in general obligation bonds at a rate of 3.78 percent.
Nine othernational and regional financial firms submitted bids for the right to sell the bonds, the county said in a statement.
Financial experts, including financial research firm Morningstar, said the county?s sound financial outlook makes the bonds a good investment risk.
“The ?AA+? rating [from the international bond rating agency Fitch] reflects Carroll County?s strong financial position, continued adherence to prudent fiscal policies, comprehensive long-term planning, a steadily growing tax base, and low-to-moderate debt levels,” Morningstar said in its report of the bond issue.
