Pin It
ImageTompkins County sold over $20 million in one-year bond anticipation notes today to support its construction program for an unprecedented note rate cost of only 0.34%, a result that Finance Director David Squires characterizes as “extraordinary” and a reflection of the County’s strong financial reputation.

Most of the $20.4 million issue represents renewal and refinancing of prior construction debt, with $3.2 million in new money for highway purposes under the County’s five-year highway program.  $1.8 million will be reimbursed by federal money, related to the Warren Road reconstruction project.

“I was greatly surprised, as I had anticipated an interest rate in the neighborhood of 0.5%,” says County Finance Director David Squires. “In fact, all the bids came in below that.  We attribute this to our well-regarded credit in the financial community.”  Mr. Squires believes the rate is the lowest to date this year to date for comparable municipalities in New York State.

TD Securities LLC was the lowest of five bidders, with its effective net interest rate of 0.349%.  Bids received ranged from that level to 0.5 percent.

Tompkins County’s municipal bond rating is “Aa2”, as determined by Moody’s Investor Service.  Such ratings are based upon analysis of four primary factors related to municipal finance:  economy, debt, finances, and administration/management strategies.  An “Aa” rating, as defined by Moody’s, reflects “very strong creditworthiness relative to other US municipal or tax-exempt issuers or issues.”  Tompkins County’s bond rating is among the highest in New York State.

----
v5i48
Pin It