Pontiac, Michigan -- Oakland County Executive L. Brooks Patterson's administration saved taxpayers nearly $2 million in a single bond sale transaction. The county received nine bids today from the sale of $11,955,000 in Oakland County Building Authority Refunding Bonds, Series 2012. The best bid will provide the county with a net savings of $1,893,737.40.
"This shows how the county's coveted AAA bond rating which my administration works hard to retain benefits Oakland County taxpayers," Oakland County Executive L. Brooks Patterson said. "Our AAA bond rating allows the county to finance at the lowest interest rate available."
This refunding was rated AAA by Standard & Poor's this week and Aaa by Moody's Investors Service last week. S&P cited Patterson's three-year budget as among the reasons for the AAA bond rating. Oakland County has "robust financial operations with strong management and very strong reserves," S&P said.
The proposal which produced the lowest true interest cost to the county after subtracting the premium won the bid. The proposal of Stifel, Nicolaus & Co., Inc. was accepted. It had a true interest rate of 1.757227 percent.
Bond refund details:
Actual amount to be deposited in the escrow fund: $11,735,000.00
Actual cost of issuance: $96,320.00
Actual premium: $186,320.00
Actual net savings: $1,893,737.40
Actual present value savings: $1,730,405.30
Percent of refunded PAR: 14.746 percent
For media inquiries only, please contact Bill Mullan, Media and Communications Officer, at (248) 858-1048.