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County Saves $3 Million After Lowered Interest Rate on Bond Debt

Deal finalized Tuesday, freeholder says

Favorable interest rates nationwide, coupled with the county’s upgraded , will lead to a savings for Ocean County as it repays bond debt, freeholders said.

The county has refinanced nearly $32 million of bond debt, securing a lower interest rate on the debt, leading to $3 million in savings, said Freeholder John Bartlett.

“The county on June 19 successfully refunded $31.98 million of previously issued debt, that is, general obligation bonds in the county of Ocean that could be callable.”

The debt was not extended, the county will owe the money for the same amount of time as previous, just at a lower rate, Bartlett said. The bond notes were on a variety of bonding issues but bundled together for the refinancing.

“They are reissued for no period of time longer than they were originally, so we’re not extending the debt in this time, but what we are doing is taking advantage of two things: the county’s triple A bond rating… and the fact that interest rates are particularly low,” Bartlett said.

Jaffries and Company offered 1.8 percent interest cost, where the previous rate was upward of 5 percent, Bartlett said. Twelve bidders came forward and 1.8 percent was the lowest bid.

The cost to reissue the bonds is about $500,000, but even after the costs, the county is expected to save more than $3 million, said the freeholder.

“That’s more than we expected at first,” Bartlett.

GOP afraid of me June 21, 2012 at 06:00 PM
Bartlett is nothing more than a BS artist who believes himself. Since he was GIVEN a job at OCC, and a pension, he would do nothing to keep costs down because currently HIS college is being expanded. Heres the FACT: YOUR SILLY BOND RATING YOU KEEP TALKING ABOUT HAS DONE NOTHING TO LOWER MY TAXES! The public needs tp pay attention when voting.
LikesTea2012 June 21, 2012 at 09:51 PM
The $3 million savings Freeholder Bartlett is talking about is over the life of the bonds. Let's say the life is 20 years. That's $150,000 per year. Thirty years? $75,000 per year. Considering the size of the county budget, that's really not all that much money. It barely covers the cost of the Freeholder's health benefits. Now, the cost of refinancing the bonds is stated to be about $500,000. Does anyone think that this cost is spread over the life of the bonds? Of course not. And where does this half a million dollars go? It goes to the lawyers, accountants and financial advisors who put the deal together. Pretty nice pay day. It would be nice if the Patch reporter would ask somebody at the county the names of the consultants who are getting about $500,000 of the tax payers money. Then it would be nice if the reporter would check the State election contribution reports to see if these people made political contributions and to who. Stop taking everything you're fed at face value. Listen, investigate, then report. Without the investigation, reporting is nothing more than free campaign propoganda.
JANE T June 21, 2012 at 09:57 PM
The public will, and vote Bartlett and Little back in by a immense wide margin. You would be hard pressed to find anyone whom even knows the D's running against these two R's. Come on now, you know they are gong to win in Nov.
MOONPOOL June 22, 2012 at 11:34 PM
we as a taxpayer should be trying to figure out why the taxpyer footed the bill on the shop rite job. this was a nice favor the county Enginering dept gave to the onwer and contractor??? the Freeholders should be asking why 11 county workers were on a private job site? on a state road (RT 9)???? nice favor the county engeriner gave to someone! With taxpayer money!
1stcav June 23, 2012 at 12:17 PM
Freeholder= smoke & Mirrors on all levels of BS...they lie and then the other swears by it ! Good Old Boys Club of O.C...Rep's...

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