Refinancing bonds will save county money

Pierce County plans to take advantage of low interest rates to refinance up to $225 million in bonds.

At its Sept. 1 meeting, the Pierce County Council passed two resolutions indicating its intention to do just that, saving an estimated $42.3 million.

“The interest rates are very, very low, and so the effective interest rates will actually right now be estimated to be under 1 percent,” said Paul Bocci, senior legislative analyst to the council, in discussing Proposal No. R2020-70, a statement of intent to refinance $13 million in par value limited tax general obligation refunding bonds.

The move is estimated to save 12.5 percent or $1.6 million on the 20-year bonds, which are set to mature in August 2029. 

The council also passed Proposal No. R2020-71, a statement of intent to refinance $212 million in par value sewer revenue refunding bonds in two series, estimated to save 13.36 percent and 12.65 percent, respectively, or a total of $40.7 million.

The council also passed Proposal No. 2020-75, which changes the deadline for reports related to a review of justice services in the county from Sept. 1 to Sept. 9 and have the reports presented to a Council of the Whole meeting instead of the Public Safety Committee.

Finally, the council passed Resolution R202-73, setting the date of the evening District No. 4 Pierce County Council meeting for 5:30 p.m., Sept. 16 in the Pierce County Council Chambers in Tacoma. Owing to continuing restrictions related to the COVID-19 pandemic, the meeting will be held via Zoom.