Pierce County has announced that it has sold $11.3 million of general obligation refunding bonds and $189.4 million of sewer revenue refunding bonds to refinance existing debt and take advantage of lower market interest rates.
The general obligation refunding will save $1.6 million in the county’s general fund, and the sewer revenue refinancing will save the county’s sewer system more than $23.7 million.
“We were pleased to take advantage of the low market interest rates,” said Gary Robinson, director of finance, in a statement. “Along with helping the county maintain affordable sewer rates, these interest savings will make additional funds available to support our roads and sewer operations.”
Interest rates averaged 0.76 percent on the new general obligation bonds as compared with 5.34 percent on the bonds being refunded. For the sewer revenue refunding, interest rates averaged 2.37 percent as compared with 4.19 percent on the debt being refinanced.