Following ECFSA approval, refunding action will be included in 2017 borrowing; Poloncarz notes effects of fiscally prudent move
On Monday, Erie County Executive Mark C. Poloncarz announced a refunding of General Obligation Sewer District Bonds will be included in 2017 Erie County borrowing, an action that could result in approximately $1.687 million in savings for county sewer districts.
In early June, the Erie County Fiscal Stability Authority ("ECFSA") approved the refunding of Series 2005B and 2006B bonds along with the county's 2017 borrowing plan, but made the refunding move and its cost-savings contingent on the passage of a "Declaration of Need" by the Erie County Legislature. The Poloncarz administration clocked in a resolution authorizing the bond issuance and refunding today at the legislature.
"Refunding these bonds provides a good return for county taxpayers, makes wise use of the bonds themselves, and is good for our sewer districts," Poloncarz said. "We are in a strong position to save money here while still performing critical infrastructure repairs, and the refunding of these bonds is a smart way to do that.
"Erie County's bond rating and fiscal reputation have steadily improved under my administration, a fact once again recognized by the ECFSA in their approval of our 2017 borrowing and refunding plan. I am pleased to say that we are bringing over $1.6 million in savings to taxpayers, and I encourage the legislature to promptly approve our resolution so we can save money and keep vital county projects moving forward."
Under the resolution, the ECFSA would be authorized to sell and issue bonds in the estimated amount of $51,554,891, but in no event to exceed $57,000,000, to fund certain of the county's capital projects and to refund Series 2005B and Series 2006B Sewer Bonds. According to refunding analyses, it is anticipated the refunding of the Series 2005B Bonds would result in $1,462,468 in savings, while the Series 2006B Bonds would yield an additional $260,774.
The legislature is expected to act on the resolution when it meets on Thursday, June 22.