CITY OF BRAZORIA: Brazoria County re-funded bonds saving over a million dollars

By Press release submission

Jan 26, 2020

City of Brazoria issued the following announcement.

Brazoria County successfully priced $9.840 million of tax-exempt bonds to be used to re-fund certain outstanding Unlimited Tax Road Bonds for savings. The rating agencies reaffirmed the County’s Aa1/AA+/AA+ (Moody’s/Standard & Poor’s/Fitch), citing the County’s credit strengths, including a large and rapidly growing tax base, solid finances, low debt burden, and strong leadership.

The bonds being re-funded had original maturities of 2021 through 2030 (no maturities were extended by the re-funding).
The total gross savings were $1.255 million.
On a present value basis, the savings were approximately $1.124 million. This equates to 9.8% of the bonds re-funded.
The overall borrowing cost was 1.72%, with an average life of 6 years.

“We were able to take advantage of our good economy, low-interest rate, and the County’s AA+ ratings to save taxpayers over $1.2 million”, said County Judge Matt Sebesta. “I am proud we could make this happen for our County.”

Original source can be found here.

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