Follow Chris Linkedin Twitter Facebook
Email Chris Email
Economic Development
Mar 17, 2021

County Saves More Than $8 Million Through Bond Refunding

Sponsored Content provided by Chris Coudriet - County Manager, New Hanover County Government

Saving tax payer money is something that New Hanover County strives to do everyday. It’s foundational to our strategy and vision of modeling good governance. We want to make sure we use the public resources entrusted to us wisely, and always ensure we are being good stewards.
   
The county continuously reviews its outstanding debt compared to the current interest rate environment to determine when we should take advantage of lower interest costs. This lowers our expenses so we are able to minimize taxes and fees for our residents and businesses.
   
New Hanover County also has a triple-A bond rating from both Moody’s Investor Services and Standard & Poor’s Rating Services (the highest rating a county can achieve financially), so it allows us, as a government entity, to get the best possible interest rates available.
  
With the historically-low interest rates the nation has experienced recently, our Finance Department took the necessary steps to refund several of our outstanding debt issuances that were issued during a time when interest rates were higher. Through this process, the county was able to obtain a much lower interest rate on outstanding debt and see a total net present value savings of over $8.7 million over the remaining life of the debt.
    
This is great news and an example of the county’s continued focus on stewardship.
   
For the financial aficionados among us, I’ve outlined those specific savings below:  

  • General Obligation Bond Refunding: refunded certain 2010 bonds and certain 2013 bonds that funded capital projects for Cape Fear Community College. The 2010 refunding produced $4,254,271 in net present value savings (14.18% of outstanding bonds refunded) and an average annual savings of $435,000. And the 2013 refunding produced $3,425,237 in net present value savings (11.71% of outstanding bonds refunded) and an average annual savings of $251,000.    
  • Limited Obligation Bond Refunding: refunded a bank loan that was used to fund the construction of the Pine Valley Library and Ogden Fire Station. The refunding produced $1,083,201 in net present value savings (14.92% of debt that was outstanding) and an average annual savings of $97,000.    
The more-than $8 million in savings will be a lasting benefit for years to come, because now that money that was programmed for debt payments can be re-purposed and used in the general fund toward other important purposes to serve our residents and businesses. Effectively, that’s $8 million in revenue we don’t have to raise to meet things our community needs and wants.
 
This is really great news for our tax payers and our county, and I appreciate the work of our Finance team and the leadership of the Board of Commissioners in making stewardship a priority and a value that the county embraces and acts on.  


New Hanover County is committed to progressive public policy, superior service, courteous contact, judicious exercise of authority, and sound fiscal management to meet the needs and concerns of our citizens today and tomorrow. See more at http://www.nhcgov.com.

Other Posts from Chris Coudriet

Nhcseal wilmingtonbiz
Ico insights

INSIGHTS

SPONSORS' CONTENT
Junegunter teachinghorse headshot 5721115557

Find Your Herd

June Gunter - TeachingHorse
Jeremytomlinson enfuse headshot

The Ultimate Secret To Keeping Your Business Data Safe

Jeremy Tomlinson - Enfuse Technology Solutions
Chris coudriet

Connecting Resources For Safer Schools And Community

Chris Coudriet - New Hanover County Government

Trending News

Restaurants, Retailers Among 192 Businesses Receiving Pandemic Relief Grants

Staff Reports - Sep 22, 2021

Mayfaire Announces Opening Dates For New Stores

Cece Nunn - Sep 21, 2021

More Than 51 Acres Sell In Leland

Cece Nunn - Sep 21, 2021

New Restaurant Opening Saturday In Ogden

Justin Pope Williams - Sep 22, 2021

Custom Builder Moves Into New Office After Repurposing Former Church Building

Cece Nunn - Sep 23, 2021

In The Current Issue

Spotlighting This Year's MADE Awards

Each year, a spotlight shines on manufacturers and makers in the Cape Fear region, revealing that the area is home to more made-in-Wilmingto...


MADE Winners: Exporter Category

HSM Machine Works, Marpac Yogasleep and SOS Life Sciences Corp. were winners in the MADE Awards Exporter Category....


MADE Winners: Manufacturer Category

Cape Fear Catamarans, CDB Corp. and Mojotone were winners in the MADE Awards Manufacturer Category....

Book On Business

The 2021 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

Trying to Grow a Business?
2020 Health Care Heroes
2020 WilmingtonBiz 100