Dutchess County’s Bond Refinancing
Saves Over $700K for Taxpayers
County’s Strong AA+ Bond Rating Drives Robust Demand
Poughkeepsie, NY … “Strong fiscal management and conservative budgeting practices have once again delivered savings for taxpayers,” said Dutchess County Executive Marc Molinaro as he announced Dutchess County Government realized $730,000 in savings for taxpayers from recent refinancing of County bonds. “Thanks to our impressive AA+ bond rating making our county bonds highly sought after and good timing in the market, we were able to secure an even lower interest rate than anticipated, saving almost $300,000 more than anticipated.”
The Dutchess County Department of Finance received approval in March from the County Legislature to refund (refinance) bonds originally issued in 2010 and 2011 for various projects to take advantage of declining interest rates. It was originally estimated the bond refunding would net an estimated $466,000 in savings. There was strong market interest in Dutchess County’s bond offering, driving down the interest rate for the County. The effective interest rate on the new bonds is 1.71%, compared to 3.18 % on the previous bonds.
“Thanks to the fiscal stewardship of our dedicated Finance Department and Budget Office, Dutchess County is well known as a solid investment. We are grateful to the County Legislature for its swift action last month to authorize this bond refinancing, allowing us to capitalize on market timing to optimize taxpayer savings,” continued County Executive Molinaro.
In preparation for the bond refinancing, Standard & Poor’s (S&P) Rating Services had reaffirmed Dutchess County government’s AA+ bond rating – the highest S&P rating of any county in New York State. The County’s enviable bond rating was an important component in securing the low interest rate for the new bonds. S & P has consistently recognized Dutchess County’s strong management, strong economy and strong budgetary practices and performances as key factors in its continued assignment of an AA+ bond rating.
The refinancing will reduce the County’s annual debt service between $50,000 and $100,000 over the next several years.