Bond Sale Generates Millions in Savings for MauiJune 26, 2014, 5:54 PM HST · Updated June 26, 7:30 PM 0 Comments
By Maui Now Staff
Maui County Finance Director Danny Agsalog today announced that low interest rates for a bond sale generated millions of dollars in savings for taxpayers.
According to Agsalog, the competitive bond sale of $68 million, was sold at a premium with a net proceed of $75 million.
Agsalog said that of the $75 million in proceeds, $51 million will fund new and ongoing capital improvement projects, and $24 million will go toward refunding.
According to Agsalog, a bond refunding series in 2004 and 2006 saved the county $2.1 million.
Maui received a 2.63% rate, below the national average of 2.9% listed today for bond market yields for 20-year bonds, county officials said.
“It was an extremely successful competitive sale,” said Acting Mayor Keith Regan in a county press release. “We surely landed lower than the market today. This is fantastic news for our taxpayers.”
The County of Maui recently earned positive ratings by Moody’s as Aa1, and by Fitch Rating and Standard & Poors as AA+ for this bond sale, which presently gives Maui County the highest bond rating in the state, the announcement said.