County completes successful bond sale
August 27, 2015 finalized what the county has worked so hard to build and maintain – the ability to secure voter-approved bonds at the best and lowest rate possible. With the bond sale, the county sold $83.3 million in bonds which generated the goal of $92 million. The County was able to obtain bond premiums of over $9.1 million because of the county’s high credit rating. This means the county can complete projects valued at $92 million but only pay on debt [and interest] of $83.3 million
The bond proceeds will fund capital projects for New Hanover County Schools, which the voters approved in November 2014, and Cape Fear Community College. The funds will allow for various school renovations to be completed, the construction of one new elementary school, and a new community college classroom and training facility, which was promised to the voters with the 2008 community college bond referendum.
Because of the county’s high bond rating, which is the highest that can be obtained from rating agencies, (Aaa from Moody’s Investors Service and AAA from Standard & Poor’s Ratings Services) the interest cost on the bonds were approximately 2.28%. The first payment on this debt this fiscal year came in under amounts budgeted due to this low interest cost.
New Hanover County is one of only 80 counties in the nation that are triple A rated by Moody’s and Standard Poor’s – there are 3,069 counties in the United States, which places New Hanover County in the top 3 percent of bond-rated counties across the country.