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COMPTROLLER MYCHAJLIW SAVES TAXPAYERS MILLIONS BY REFINANCING DEBT


In a cost saving initiative similar to a family refinancing their home, Comptroller Mychajliw took advantage of lower interest rates and an improved credit rating to refinance old County debt

(Buffalo, NY) – Erie County Comptroller Stefan Mychajliw signed the resolution for refunding the 2005 bonds, which will save taxpayers roughly $2.5 million. Lower interest rates and an improved credit rating make the refunding a worthy endeavor. The cost saving measure, initiated by Comptroller Mychajliw, is similar to families refinancing homes at lower interest rates to save cash.

“After bonds reach their call date, which is this year for the 2005 bonds, the County has an option to refund them at lower interest rates. The process is similar to someone refinancing their home mortgage to take advantage of the market. I'm proud to lead this cost saving initiative that will save taxpayers millions of dollars," said Mychajliw.

In addition to the interest rates being dictated by the market, the County also has increased credit worthiness. The improved credit rating of the County allows for further savings on any kind of borrowing.

“It’s important to remember that the 2005 bonding was done at the height of the ‘Red/Green Budget Crisis,’ which caused a major hit on the County’s credit rating. Now, that monkey is off our back,” said Mychajliw.

Fitch Ratings, an international leader in credit ratings and research, gives Erie County an “A” rating. At the time the 2005 bonds were issued, Erie County had a rating of “BBB-.” From December of 2003 to December of 2005 the rating decreased from “AA-” to “BBB-.”

Since Comptroller Mychajliw has been in office as the Chief Financial Officer for taxpayers, the County has received an increase in its credit ratings every year. Comptroller Mychajliw is currently working with senior staff and the County’s financial advisors to explore requesting another ratings increase.

"I will continue fighting for taxpayers to save families money every chance I get. My mission is one I take very seriously: to protect, respect and fight for taxpayers every single day," added Comptroller Mychajliw.

For a PDF of this release, click here.

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