Contra Costa County’s AAA Bond Rating Reaffirmed
Contra Costa County this week issued $71,115,000 of lease revenue bonds, for projects that will generate a net savings of close to $6.2 million over a 20 year span. Approximately $50 million will be used to refinance existing county bond debt at significantly lower interest rates, which will save the County $4.5 million. Together, the combined savings in electricity and debt service costs is projected to be in excess of $10 million.
Contra Costa County Supervisor Mary Nejedly Piepho praised the County for continuing to look for ways to enhance services while reducing costs. “Taking advantage of the current low interest rate environment makes sense,” said Piepho. “This bond package is about doing more strategically and efficiently, and continuing to look for ways to help the public while improving the County’s financial status.”
County Administrator David Twa noted that the County’s fiscal responsibility to the public continues. “Standard and Poor’s has reaffirmed our AAA rating,” Twa added. “We came out of the Great Recession with an aggressive plan to regain our financial footing, under the leadership of the Board of Supervisors and through the hard work and shared sacrifice of County employees, we’re seeing the benefits now.”
Standard and Poor’s, as well as Moody’s, attributed their high ratings for Contra Costa County to very strong financial management, with policies and practices well-embedded in County operations. They also pointed to a strong local economy with a large, diverse tax base. The lease revenue bonds were issued on Tuesday, August 4, 2015.