For Immediate Release:
January 22, 2015
Competitive bid results in 2.85 percent interest rate over next 20 years
COLUMBIA – This afternoon, Boone County Treasurer Nicole Galloway presented the winning bid for the county’s 911 Emergency Call Center Bonds from the financial services firm Robert Baird, headquartered in Milwaukee . The sale was awarded following a competitive bid that saw three bids received. The announcement follows the special obligation bonds being rated Aa2 by Moody’s, its third-highest rating available, the week prior. The winning bid from Robert Baird was for an interest rate of 2.85 percent that includes underwriting costs.
“Receiving a low interest rate on our long-term debt will save money for years to come,” Galloway said. “After considerable planning and work, we were able to successfully sell our bonds at the right time in the market, resulting in competitive bids for our bonds and an overall low cost of borrowing. Low financing costs mean more of our resources can be spent on other public safety needs.”
Original estimates from 2012 projected interest rates over three percent. As a result of market timing and the bond’s high rating, the approved financing will save $270,450 overall and approximately $13,500 annually versus these planning estimates.
The three bids were from:
Robert Baird – Milwaukee: 2.85 percent
Hutchinson Shockey Erley – Chicago: 2.86 percent
FTN Financial – Memphis: 2.94 percent
The county chose the bid from Robert Baird because it provides the lowest cost of financing and lowest cost of interest. The bonds will be repaid over a 20-year period from the dedicated 911 sales tax passed by voters in April 2013. Construction on the facility is expected to begin in March 2015.
About Boone County Treasurer Nicole Galloway
County Treasurer Galloway is a CPA and Certified Fraud Examiner. She manages a $60 million investment portfolio, and is responsible for making sure it is invested safely and securely, that investments meet the liquidity necessary for the county’s cash flow needs and that investments achieve the best return possible. She issues all general obligation and revenue bonds, administers banking services and manages unclaimed property for the county. She provides oversight for several financial and non-financial projects as a member of county boards and committees, including the Local Emergency Planning Committee.