S&P’s acknowledges Ulster County’s "Solid Financial Position"
Kingston, NY - Ulster County recently sold $3,082,500 in tax exempt serial bonds to Morgan Keegan & Company and $7,265,000 in tax exempt bond anticipation notes to Janney Montgomery Scott, LLC. Both bonds received favorable interest rates following a positive bond rating from Standard & Poor’s. The serial bonds were sold for 15 years at a 3.10% rate and the tax exempt bond anticipation notes were sold at an extreme low of 1.25%, with a $56,739.65 premium, resulting in an effective net interest rate of .469%.
"The favorable interest rates secured by Ulster County will further our efforts to save taxpayers money," said County Executive Hein. "With favorable interest rates, we will require less tax dollars to pay for short and long-term debts. I am very pleased that Standard & Poor’s recognized the actions we have taken to keep Ulster County’s financial house in order."
"The fact that Ulster County was able to secure such low interest rates is a testament to the sound financial management of County Executive Hein," said Commissioner of Finance Paul Hewitt. "Furthermore, it is an affirmation from the credit industry that Ulster County is making the correct choices with regard to our financial future."
Standard & Poor's recently assigned the county an AA- bond rating. According to Standard and Poor’s, the AA- bond rating reflects "good wealth and income indicators and healthy tax-base growth; continued solid financial position and strong fund balances
despite declines in sales tax revenue as a result of the recession; and low overall debt profile and manageable capital plan."
The purpose of the notes are to provide temporary financing for SUNY Ulster, the Law Enforcement Center, Saugerties Sewer & Water Districts, and the reconstruction of various box culverts, bridges, roads and highway equipment, including:
The Donahue Bridge in the Town of Shandaken at $500,000; Shovel Ready Sewer & Water Extensions on Old Kings Highway in the Town of Saugerties at $500,000; Bear Hole Bridge in the Town of Denning at $300,000; County Highway Equipment at $1,000,000; and Reconstruction of County Roads at $350,000 County motor vehicle fleet at $432,500 The details of the serial bond and note offering are published in the County’s Official Statement published by the County’s fiscal advisors, Fiscal Advisors & Marketing, Inc. at www.fiscaladvisors.com