County to Save $472,000 with Lowered Interest Rate on Library Bonds

Jackson County Government will save another $472,573 in interest expense over the next 10 years by refunding the 2002 Library Bonds for a lower bond yield of 2.63%. This is similar to the 2006 refunding of the Series 2000 bonds for the library which was refinanced at a lower rate saving $2.1 million over the life of the bonds.
In addition, by completing the 14 library projects under budget this past summer, Jackson County saved an additional $800,000 which was moved into a fund to pay for debt payments
"We are saving taxpayers nearly three and a half million dollars," said Dennis C.W. Smith, Jackson County Commissioner. "Jackson County government continues to exhibit fiscal responsibility that has put us in a strong financial position. Residents trusted our government when they voted for the bond measure and we have exceeded expectations with quality facilities and substantial cost savings."
Jackson County had already created a $24 million savings over a five-year span by outsourcing operation of the libraries to Library Systems and Services LLC.
The new bond yield is 2.63%, the average coupon is 3.99% and the previous average coupon was 4.58%. The County is receiving such a favorable rate because of the market (in 2002 the 10-year Treasury rate was 4.61% compared to 2.76% today) as well as a strong credit rating. Moody's Investors Service has rated Jackson County bonds at "Aa2," signifying high quality bonds with very low credit risk and allowed the County to price aggressively in the market. Jackson County?s bonds were in an oversold position in less than an hour.
According to Moody's, "The County has managed to build substantial general fund reserves without significantly impacting services and has also cash-funded several capital projects."
"Jackson County government focuses on providing excellent public services while at the same time running efficiently to save taxpayers money," said Dave Gilmour, Jackson County Commissioner.
"It is because of the hard work of our finance department, board of commissioners, the administrator, budget committee, and staff that we are in the position to have a lower bond yield," said Jack Walker, Jackson County Commissioner.
In 2000, Jackson County residents voted for a $38.9 million bond measure to rebuild 14 library branches. There is $12,500,000 remaining in the 2006 bonds (refinanced Series 2000) and a total of $12,415,000 in Series 2002 Library debt remaining. Of that remaining amount, Jackson County refunded $10,300,000. The final maturity date of both bond issuances is 6/1/2020.
For more information, please contact Danny Jordan, Jackson County Administrator, at (541) 774-6003.cell phone spy software mobile phone