James City County Saves $1.4 million Through Bond Refundings
Date: July 1, 2003
FOR IMMEDIATE RELEASE
Contact: Sue Mellen, JCC Financial & Management Services
Phone: (757) 253-6638
Over the past fiscal year, James City County has reissued its 1994 and 1995 General Obligation Bonds, resulting in savings of $100,000 annually and $1.4 million over the remaining life of the Bonds.
The Bonds were initially sold to finance County projects that included the building and renovating of schools, libraries, and parks. In 1994, the projects were approved for financing by County citizens by a voter referendum. After refunding, the Bonds now total $27 million.
The most recent refinancing closed on Thursday, June 26, 2003. James City County was able to secure an interest rate of 2.71 percent. Before that, the debt had been financed at rates ranging from 5.19 percent to 5.44 percent.
"The favorable refinancing is a re-validation of the County’s positive fiscal situation and reflects credit on the financial management team and the Board of Supervisors," according to Sandy Wanner, County Administrator of James City County.
It was not by accident that James City County was able to secure such a low rate. According to Standard and Poors, the County’s current debt rating is AA, which classifies its Bonds as very high quality. The double-A upgrade came in April of 2002, when S&P boosted the rating from A+ to AA skipping over a grade, which is regarded as highly unusual. Analysts stated that a strong tax base growth and conservative financial goals adopted by the Board of Supervisors were among the many reasons for the change in rating.