The Ela Area Public Library will save taxpayers over $1.1 million by locking in record low interest rates on its sale of bonds this month. The library refinanced $6,255,000 worth of bonds at an interest rate just under 1 percent. Originally, the bonds were issued in 2000 to pay for construction of the library.
“Our bond sale went extraordinarily well, even better than expected,” said the Library’s Executive Director Matt Womack. “Much like refinancing a house, we were able to secure an extremely low interest rate and save taxpayers over a million dollars.”
Eight bids were received from banks and investment firms across the country. Janney Montgomery Scott LLC of Philadelphia, PA, submitted the bid with the lowest true interest rate of 0.9471%.
Steve Larson of Ehlers and Associates, the library’s financial advisor, said the library benefitted from its Moody’s Investor Service “Aa2” credit rating. “It means the bonds of the Ela Library reflect the District’s strong income levels and home values, strong financial management, fund balances and favorable debt profile. They are a very good investment for investors, and they’re very stable.”
The savings will be passed on directly to the taxpayers of the Library District by reducing the bond levy by about $195,000 a year. “This is a direct savings to our residents and will help to maintain a stable overall tax levy rate and contain costs,” Womack said.
This news release was submitted by Ela Area Public Library.