Contact: Stephen Smigiel
FOR IMMEDIATE RELEASE
October 13, 2020
Macomb County, Michigan Refinances Retiree Health Care Bonds, Saving $6.5 Million Over 15 years
Macomb County taxpayers will save more than $6.5 million over the next 15 years due to the successful refinancing of $108.8 million of outstanding bonds. The County took advantage of its enviable Aa1 bond rating and historically low interest rates to achieve the savings.
“Taxpayers will not only see significant savings, but County retirees will enjoy greater protection for their health care benefits,” said County Executive, Mark Hackel. “This is one of those cases where everyone wins.”
The County refinanced $108.8 million of its $213.1 million outstanding Retiree Health Care bonds. The County’s strong credit rating resulted in high investor demand for the bond sale which took place on October 9. The savings will amount to $430,000 annually for the next 15 years. Interest rates on the refunding bonds range from 0.249% to 2.239%. The original bonds were issued in 2015 and carried interest rates in the 4% range.
County Administration, in cooperation with the Board of Commissioners, worked through many hurdles amid the COVID19 pandemic to ensure timely execution of the transaction to take maximum advantage of market conditions. “I would like to thank the Board of Commissioners for their support of this initiative and their efforts in recent weeks to keep the sale on track,” said Hackel.
Refinancing the bonds is another example of the County’s commitment to protecting the benefits earned by its employees and retirees. “Promises made are promises kept,” Hackel said.
43565 Elizabeth Rd., Mt. Clemens, MI, 48043