Skagit County successfully refinances 2006 bonds

Thanks to historically low interest rates, Skagit County recently issued bonds to refinance existing debt and allow for critical facility upgrades.

According to a press memo from Bronlea Mishler, Skagit County Communications Coordinator, “Any time we have the opportunity to save Skagit County taxpayers money without affecting the quality of the services we provide, we want to take that opportunity,” said Commissioner Lisa Janicki. “Issuing a new bond at a lower interest rate allows us to save taxpayers approximately $65,000 per year for the remaining life of the bond.”

The original bonds were issued in 2006 to cover the cost of constructing the Skagit County Administration building on Continental Place. At the time, the bond amount was $7.6 million with a True Interest Cost of 3.93 percent.

The County received bids in June to refinance $4.895 million of the bond as well as issue new bonds. Seven companies nationwide submitted bids. FTN Financial Capital Market presented the winning bid, with a True Interest Cost of 1.41 percent for the refunding – more than two and a half percentage points lower than the previous rate – and 1.78 percent for the entire issue.

Skagit County will use the cost savings of approximately $65,000 annually from the refunding to pay a portion of the debt service on the $3.3 million it will cost to install ventilation and air conditioning in its downtown administration building. Built in the 1970s, the administration building has no air conditioning or ventilation system.

For questions or more details, please contact Bronlea Mishler at 360-416-1309 or bronleam@co.skagit.wa.us.

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