Big Bucks Saved by ECFSA Borrowing
Erie County saved $3.2 million when the Office of Comptroller borrowed through the Control Board
(Buffalo) – Erie County Comptroller Stefan I. Mychajliw is pleased to report that Erie County saved approximately $3,189,050 by utilizing the Erie County Fiscal Stability Authority (ECFSA) and its lower interest rate to borrow on behalf of taxpayers, rather than having Erie County and its higher interest rate conduct borrowing.
The investment grade ratings of numerous Wall Street agencies consistently issue better borrowing rates for the Control Board compared to Erie County.
“I am pleased the administration agrees with my position to put the interests of taxpayers ahead of politics. We should continue utilizing the Control Board’s lower interest rate to borrow. My position has been consistent.”
“Erie County cannot afford to needlessly waste money borrowing with higher interest rates. I have supported this position as a candidate and will continue do so as long as I am the people’s fiscal watchdog. My office will continue to look at ways to save taxpayers money,” said Comptroller Mychajliw.
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Wall Street Rating Agency |
Control Board |
Erie County |
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Moody's |
Aa1 (towards top of rating scale) |
A2 (towards bottom of rating scale) |
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Fitch |
AA+ (towards top of rating scale) |
A (middle of rating scale) |
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Standard & Poor's |
A- (near bottom of rating scale) |
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This is not the first time Comptroller Mychajliw encouraged borrowing through the Control Board in order to take advantage of its stronger interest rates. Those sentiments were echoed last year, in the summer of 2012:
“It makes absolutely no sense whatsoever for the county to ignore the lower interest rate of the Control Board, the ECFSA, and they have a stronger bond rating. It just makes perfect sense to let them do the borrowing.”
July 31st, 2012, then Erie County Comptroller candidate Stefan Mychajliw, Rath Building press conference
Erie County officially closed on its 2013 capital borrowing and 2013 refunding on April 4th, 2013. The companion Mirror Bond that accompanied the ECFSA’s closing of its Sales Tax and State Secured Bonds Series 2013A for $25,635,000 and Series 2013B for $31,135,000.