On Monday morning at the Nolan County Commissioners' meeting, action was taken to approve an order authorizing the issuance of the second bond for the county projects.
This general obligation (GO) bond is for the 2013 year and was approved at $5,730,000. On the agenda, the amount was not to exceed $5,870,000.
Vince Viaille from Specialized Public Finance, Inc. and Tom Pollan from Austin were in attendance at the meeting to present the information to the commissioners.
Viaille gave a summary of their work in the market with the underwriter, which was completed last week. As a result, the county received a 2.063% interest rate for the second bond.
Once again with this process, the county had to apply to Standard and Poor's (S&P) for a rating, in which they received an "A" rating. Impacting the rating on a positive note was the county's very strong finances and a low property tax rate.
Also discussed with this bond was the sources and use of the funds, and it was noted that county caught a very favorable interest rate environment. By separating the two issues, the county will see significant savings.
The previous bond came in with a 2.029% interest rate, while the 2013 bond had an interest rate of 2.063%. Had the bonds been combined, the interest rate could have been around 2.68%.
Thus, around $55,000 to $60,000 will be saved by splitting up the bonds. According to a timeline presented by Viaille, the expectation is to close around February 12, 2013 and receive the funds for the second issuance.