Friday, September 17, 2010

Saving Money

FOR IMMEDIATE RELEASE September 16, 2010

Bond Refinancing Saves Town of Cary Over $700K

CARY, NC – Thanks to current market conditions and a competitive bid process, the Town of Cary has successfully refinanced a portion of the 2003 voter-approved Public Improvement general obligation bonds, saving the Town and its taxpayers $728,000 in debt service, $217,000 of which will be realized in the current fiscal year. The action has a present value savings of almost $645,000 or 4.3 percent.

This transaction is the second bond refinancing opportunity the Town has taken advantage of this year. In June, Cary refinanced a portion of the 1999 voter-approved Cary Community general obligation bonds as well as a portion of the 2002 Certificates of Participation valued at $25.4 million, saving Cary taxpayers $1.5 million, with $795,000 of that also being realized this fiscal year. To take advantage of a refinancing opportunity, staff constantly monitors the market to ensure debt savings of at least three per cent.

“The Cary Town Council is always challenging staff to remain financially smart, and we are constantly monitoring the market for opportunities to save our taxpayers money,” said Karen Mills, Town of Cary Finance Director. “In this situation, bids were competitive, resulting in a great rate and emphasizing the importance of the Town’s AAA bond rating and sound financial practices.” Mills added that while only five to seven bids were expected, 12 bids were received and Citigroup presented the best refinancing option.

In May, Moody’s Financial Service, one of the three major bond rating agencies in the U.S., upgraded the Town of Cary revenue bonds to a Triple A rating, the highest possible. As a result, Cary now boasts the AAA rating from all three agencies—Moody’s, Fitch Ratings and Standard & Poor’s—on all revenue bonds. Cary has been rated Triple A by all three rating agencies for its general obligation bonds since 2001. In North Carolina, Cary and Charlotte are the only municipalities to share the prestigious ranking of Tripe A for both general obligation and revenue bonds. Cary’s AAA ratings help its taxpayers save hundreds of thousands of dollars in interest over the years.

To learn more, visit Municipal Bond Sales and the Finance Department at or call (919) 469-4380.

PRIMARY CONTACTS: Karen Mills, Finance Director, (919) 469-4110 Carrie Roman, Public Information Specialist, (919) 481-5091 Susan Moran, Public Information Director, (919) 460-4951