Salisbury – Mayor Jake Day is pleased to announce that as the result of a recent, successful public sale of General Obligation Bonds, the city will save almost half a million dollars on its future debt service cash flow.
The September 1st sale netted $11,860,000, $3,900,000 of which will refund previous-year bonds, leading to a savings of $496,625. The remaining $5,760,000 will fund important capital projects included in the City’s FY2022 Budget.
The bond sale and its resulting savings are the latest in a series of financial victories for the city – the most recent, a renewed AA rating from Standard and Poor’s, was 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.
The bond issue has a better-than-anticipated, all-inclusive (interest and fees) cost (ARC) of 1.165%. Additional fee savings were realized by combining FY2021 and FY2022 bond issues.
Mayor Jake Day credited sound financial leadership with once again putting dollars back into the pockets of Salisburians.
“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 at 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.”
For more information on Salisbury’s financial policies, the annual Capital Improvement Plan, and Municipal Budget, visit www.salisbury.md/finance