SALISBURY, Md. – Salisbury Mayor Jake Day has announced that the city will save nearly half a million dollars on future debt service cash flow.
We are told this is the result of a recent successful general bond public sale. The September 1 sale brought in $ 11,860,000, of which $ 3.9 million will repay the bonds from the previous year, resulting in a savings of $ 496,625. The remaining $ 5.76 million will fund major capital projects included in the city’s budget for fiscal year 2022.
The bond sale and the resulting savings are the latest in a string of financial victories for the city, according to city officials. The most recent victory was the renewal of Standard and Poor’s AA rating, announced in the days leading up to the bond’s sale. The conjunction of a number of positive economic factors has enabled the city to make the most of the AA rating.
“The combination of the city’s high ratings and market demand has provided one of the most successful shows in the city’s history,” said Chief Financial Officer Keith Cordrey.
We’re also told that bond issuance has a better-than-expected all-in cost of 1.165%. Additional cost savings were achieved by combining the FY2021 and FY2022 bond issues.
“We like to see our efforts result in these kinds of significant savings,” said the mayor. “By running the tightest financial vessel, we’ve positioned ourselves to take advantage of a market that’s perfect for us right now, and that has turned into half a million dollars for Salisbury. Once again, I congratulate Keith and his team for the outstanding results for their excellent work.