Having the highest achievable bond rating ofAAAis helping Ocean County save money by locking into the lowest interest rates possible, according to a press release from the county.
“Today [Aug. 23], Ocean County refinanced about $30 million of previously issued bonds, and received an interest rate of 2 percent,” Freeholder John C. Bartlett Jr. said. “The rate is one of the lowest we have received and is half the interest rate we had been paying.
“Retaining the AAA bond rating, which reflects the sound fiscal practices of this Board of Freeholders, has allowed us to lock into substantially lower rates and save almost $1.9 million,” Bartlett said.
Bartlett emphasized that the refinancing will not extend the life of the bonds, which are scheduled to be paid off in about 11 years.
Of the 12 bidders, the lowest rate of interest was provided by Hutchinson, Shockey, Erley and Co., a Chicago-based investment house, according to the press release.
Bartlett explained that in order to refund the bonds, the county must receive a savings of 3 percent based on state requirements.
“I amhappy to announce our savings was 6 percent,” he said.
Projects funded in the original $30 million in general obligation bonds include upgrades to the county’s communications network, construction of portions of the Barnegat Branch Trail, reconstruction of Long Beach Boulevard, the Ocean County Jail expansion project, the Southern Ocean County Government Complex in Stafford Township, construction of the Ocean County Airpark Terminal, Jakes Branch County Park in Beachwood and various county road improvement projects.
In addition, $26.2 million of new bonds that will be used for capital projects were sold at an interest rate of 3.1 percent. Of the seven bidders, the lowest interest rate was provided by Raymond James and Associates, of Tampa, Fla.
Bartlett said the $26 million will not increase the county’s debt because the county will be paying off about the same amount this year.
“This money covers projects that will be around for a very long time,” he said. “From road and bridge projects to facility maintenance, these are all items that need to be done and are done within our ability to pay.”
Bond rating houses Moody’s Investors Service and Fitch Ratings have both given Ocean County an AAA bond rating. Bond ratings range from Baa, the lowest, to AAA, the highest possible.