The Hays County Commissioners Court heard good news from its bond advisor Tuesday that recent refinancing of county bonds at a lower interest rate saved more than double the expected amount of tax dollars.
Dan Wegmiller, Managing Director of Specialized Public Finance, Inc., told the Court that due to the County’s high rating, the reception for the sale in the marketplace was very well received. “We hoped to realize about $3 million in interest savings and actually saved $7,146,864, inclusive of costs,” Wegmiller said. He also explained that the maturity date on the bonds remained the same. The new interest rate for the approximate $63 million is 2.82 percent.
Since 2010 the County has realized more than $16 million in interest savings by refinancing bonds and certificates of obligation to take advantage of lower interest rates while maintaining the original maturity date of the bonds. The County enjoys its AA rating from major rating agencies such as Fitch and Standard & Poor’s. Through the issuance of voter-approved bonds and other financial instruments, the County is able to maintain and improve infrastructure such as roads, buildings and parks to keep up with its exploding population growth.