Refunding Bonds

Thanks to the current low interest rate environment, Wake County has an opportunity to save approximately $3.5 million in future debt service interest payments by refunding its Series 1994 Public Safety Bonds and Series 1994 Refunding Bonds.

The Board of Commissioners has scheduled a public hearing for its regular meeting September 15, 2003, at 2 p.m., at which time the Board will consider adopting the refunding bond order. If the bond order is adopted, the Board will be asked at its October 6, 2003, meeting to approve bond resolutions for the issuance of refunding bonds and the issuance of the Public Safety bonds. The Local Government Commission would competitively bid these bonds on October 21, 2003.

The present value savings as a percentage of the bonds refunded is 4.02% as of August 14, 2003. The Local Government Commission recommends that counties achieve at least a 2% present value savings before proceeding with a refunding transaction. Because of the nature of the municipal bond market and the volatility of interest rates, County staff have recommended beginning this process immediately.