Putnam County Saves Taxpayers $1.2 million by Refinancing Bonds

CARMEL, N.Y. – County Executive MaryEllen Odell announced on Wednesday, April 15, that the County closed on bond refinancing that will save Putnam taxpayers $1.2 million.  Taking advantage of a strong Aa2 bond rating from Moody’s and favorable market conditions, the County refinanced bonds issued in 2007, that had the County paying a net interest rate of 4.25 percent, with bonds charging a net interest rate of 2.64 percent.  The savings will occur over the next 16 years.

“We are pleased that, once again, Independent Bond Rating agencies and investors have determined that Putnam County is a low-credit risk,” said Odell. “Investors have continued to invest in Putnam County at favorable interest rates, saving our taxpayers millions of dollars.”

Odell pointed out that this is the third time her administration has completed bond-refunding transactions since 2012, which have saved taxpayers a total of $3.2 million.  She also credited her colleagues in the Legislature that have supported the fiscally conservative principles that have made these refunding transactions possible.

“We have a fiscal responsibility to the people of Putnam to find opportunities, as a government, to save the taxpayers money while not diminishing our social responsibility to the residents,” said Odell. “I appreciate that the Legislature understands the importance of the balance and has been supportive with these endeavors.”

Noting that 71 percent of County government expenses are the result of program expenses mandated by the Federal and State governments, Odell said, “Putnam County Government has steadily become more efficient and effective during the past three years, but we must receive mandate relief from our Federal and State governments in order to continue remaining strong.”