CHAMBERSBURG, Pa.—The Franklin County (Pa.) Commissioners have refinanced the county's 2002 general obligation bond, which they said will save more than $400,000 in interest and fees.
Working with their adviser, Public Financial Management Inc., the county solicited proposals from 13 banks to refinance the remaining bond principal of $7.5 million. Five banks submitted proposals.
The commissioners chose Bank of America at a fixed rate of 2.99 percent for the life of the note, maturing in May 2022, the same time as the original bond issue. The remaining maturities on the existing bond carry interest rates ranging from 3.3 percent to 4.55 percent, according to a news release from the commissioners.
The commissioners chose to refinance the bond through a tax-exempt bank note rather than through reissuing bonds based on Public Financial Management's review of the municipal financing marketplace, the news release stated.
In November, the commissioners refinanced a $4.5 million lease for emergency services radio equipment, saving more than $350,600 in financing costs. They also borrowed $1.6 million in Recovery Zone Economic Development Funds under a federally subsidized program.
The Recovery Zone funds are being used for energy and efficiency upgrades to the county's nursing home facility.