The favorable municipal bond interest rate climate, coupled with the county’s strong bond rating of Aa3, resulted in substantial saving on a refunding bond offered to investors on Sept. 22.

The county received nine bids from underwriting firms nationwide on its $6,145,000 offering. The winning bid had a true interest cost of 2 percent. The 2016 bond issue is a compilation of existing debt from 2006 and 2009 bonds that were issued for land, buildings, and conservation acquisitions; no new bond capacity was added. The net present value savings as a result of the refunding is $1.28 million.

“The County has systematically worked hard to reduce debt whenever possible,” said San Juan County Council Chairman Jamie Stephens. “Combining the 2006 and 2009 bond issues into a new bond at half the interest rate was a big win and frees up money to maintain services instead of paying debt service.”

Stephens credited Treasurer Rhonda Peterson, County Manager Mike Thomas and County Auditor Milene Henley for their effort on the bond issue.

The county retired $800,000 in Solid Waste Utility debt in 2015. Total county debt is $11.5 million down from $15 plus million in 2012.

For more information about this topic, please contact Mike Thomas, county manager, at 370-7406 or email at miket@sanjuanco.com.