Lehigh County Saves $4 Million in 20 Minutes

In the space of 20 minutes Wednesday morning, Lehigh County
saved almost $4 million dollars.

The savings came from refinancing $36.5 million in 2001 bonds
through an auction on the Internet that attracted 15 bidders and 85
bids, according to Tom Muller, county director of administration.
The winning interest rate was 1.004268 percent from Guggenheim
Securities of New York. The auction started at 11 a.m. and was
over by 11:20 a.m. The savings will be spread over two years.

Muller said the turmoil in Washington over the deadline to raise
the federal debt ceiling might have contributed to the number of
bidders and the very low interest rate. Lehigh County’s Aa1 bond
rating from Moody’s Investors Service means “we’re viewed as a
very safe place to put money,” he said.

Working with Concord Public Financial Advisors, the county had
anticipated savings of about $2.2 million so officials were ecstatic
about the result. “It adds to our ability to avoid tax increases
moving forward,” Muller said.

County Executive Don Cunningham must present his 2012 budget
by Aug. 31.

The 2001 bonds were essentially refinanced bonds from 1993 and
1996 which had paid for the Government Center construction, as
well as smaller projects at Cedarbrook, the county nursing home
and the Velodrome, he said.

Muller said at the meeting County Commissioner Percy Dougherty
suggested they send Muller down to Washington to fix the
financial woes. His response? “No thanks.”