FREDERICK COUNTY, Md. (WDVM) — In Maryland, Frederick County Executive Jan Gardner announced the town secured the lowest interest rate in the County’s history in a live bond sale.
So, what are live bonds? And how does this impact residents… The county sells bonds so banks and other investors can invest in Frederick county governments debt, it’s essentially a type of loan, but in this case, the county secured this loan for a low interest rate, so now Frederick county has extra money to invest in the community and save taxpayers money.
According to the county, the interest rate on non-taxable bonds was 1.57 percent, which is considered an extremely low cost bond. Previously, the lowest interest rate the County had received was 2.16 percent.
The County Executive stated:
“The savings give us money to build another fire station or a branch library or to improve a road. Frederick County can be proud that investors appreciate the strength of our economy and excellent management of our county government and finances. The New York rating agencies spoke of our excellent management and expressed their confidence in us, and that has paid off with this incredibly low interest rate.”
This rate means taxpayers will save $680,313 over the remaining term of the taxable bonds.