Bond sale nets nearly half million in savings for City of Salisbury
SALISBURY, Md. – Salisbury Mayor Jake Day has announced that the city will save almost half a million dollars on its future debt service cash flow.
We’re told this is the result of a recent successful public sale of General Obligation Bonds. The September 1st sale netted $11,860,000, $3.9 million of which will refund previous-year bonds, resulting in a savings of $496,625. The remaining $5.76 million will fund important capital projects included in the city’s FY2022 Budget.
This bond sale and resulting savings are the latest in a series of financial victories for the city, city officials say. The most recent victory was a renewed AA rating from Standard and Poor’s, announced in the days leading up to the bond sale. The concurrence of a number of positive economic factors allowed the city to make the most of the AA grade.
“The combination of the City’s high ratings and market demand provided one of the most successful issues in the City’s history,” said Finance Director Keith Cordrey.
We’re also told the bond issue has a better than anticipated, all-inclusive cost of 1.165%. Additional fee savings were realized by combining FY2021 and FY2022 bond issues.
“We love to see our efforts culminate in these kinds of big savings,” said the Mayor. “By running the tightest financial ship, we positioned ourselves to take advantage of a market which is perfect for us in this moment, and it turned into half-a-million dollars coming back to Salisbury. Once again, I congratulate Keith and his team on the outstanding results of their fine work.”