County Completes Sale Of 2015 Road Bonds Ahead Of Schedule

From Montgomery County

CONROE, TEXAS — Montgomery County Judge Craig Doyal announced Monday that Montgomery County has sold the last remaining bonds from the 2015 bond program at a premium and refinanced $26.9 million of its current debt for a net interest savings over the life of the bonds of $1.9 million.

Last week the county sold $86 million in road bonds to generate $89.6 in proceeds for the final road projects from the $280 million road bond package approved by voters in 2015.

The county is completing the road bond authorization almost 1.5 years sooner than originally projected and without a tax rate increase. In addition, in its refinancing the county sold $26.9 million in bonds but paid off $28.6 million in debt.

“I am pleased that we have concluded the financing portion of the road bond program sooner than anticipated, and that our county commissioners are making good progress on their projects. We are keeping our commitment to the voters to get these projects funded and finished. In addition, by refinancing we are saving taxpayer money.”

John Robuck, the county's financial adviser, said the strong performance is based on the county's management of its finances.

"Since the bond election in November 2015, the County has issued $280 million in road bond, saved taxpayers over $23.8 million in interest costs through several refunding and cash defeasance programs, received a “AAA” credit rating by Moody’s Investors Service (the highest possible), granted a 20 percent Optional Homestead Exemption and absorbed the effects of Hurricane Harvey, all while lowering the County’s total tax rate by 1 cent," said Robuck, who is managing director for Texas public finance for BOK Financial Securities, Inc.

The county’s strong financial position and ratings from the nation’s credit rating agencies made it possible to sell the bonds at a premium, the judge said. The county maintained its AA+ rating with Standard & Poors and its AAA rating with Moody’s.

(For more news and information like this, subscribe to Patch for free. If you have an iPhone, click here to get the free Patch iPhone app; download the free Patch Android app here.)

Image: Shutterstock

Send your news tips and story ideas to bryan.kirk@patch.com