OFFICE OF THE IDAHO STATE TREASURER
Julie A. Ellsworth, State Treasurer
Treasurer Ellsworth Announces a $9.3 Million Savings for Idaho Taxpayers
Idaho Bond Bank Authority finalizes refinancing efforts.
Boise, Idaho - Treasurer Ellsworth announces a $9.3 million savings for Idaho Taxpayers as the Idaho Bond Bank Authority (IBBA) finalizes refinancing efforts.
The IBBA successfully closed a bond issue comprised of $20,900,000 of tax-exempt bonds and $23,265,000 of taxable bonds to refinance outstanding loans on behalf of IBBA’s current taxpayer borrowers in order to lower future debt service costs. The IBBA bonds again received an Aa1 rating from Moody’s this year.
IBBA, a statewide bonding authority, works to bring Idaho municipalities together in order to go to the market and leverage benefits with economies of scale and a strong credit quality.
Treasurer Ellsworth said, “I am pleased with the overall results of the IBBA work. Interest rates were near historical lows and investor demand was high for such a strong credit quality, resulting in Present Value Savings of approximately $9.3 million or an 18.5% reduction in the refunded debt.”
Ellsworth continued, “The IBBA creates a more cost-effective borrowing and is helpful to our local communities. I look forward to continued efforts at saving Idaho taxpayers dollars.”
This significant savings was spread across Benewah County, Caribou County, City of Emmett, City of Grangeville, Jerome County and Lemhi County as shown in the Savings by Borrower table*.
Benewah County Commissioner, Jack Buell, said “Years back, we had to decide whether to rebuild the hospital or close it. We’re a small county that is quite isolated. It’s important to have good medical facilities nearby. Taxpayers passed a bond to rebuild a state-of-the-art hospital with high quality facilities. When the option came up to refinance, we jumped at the chance. Over the next twenty years we’ll save almost five million dollars. We are just trying to do the right thing for Benewah County."
Caribou County Commissioner, Bryce Somsen, said “Caribou County had about 12 more years on a bond for our county jail that was built 20 years ago. When we found out we could save property taxpayers over $430,000 dollars by refinancing, we were thrilled.”
Emmett City Mayor, Gordon Petrie stated, “The Emmett City Clerk and our department heads are always scouting ways to liquidate debt sooner than later. The IBBA gave Emmett that opportunity. We very much appreciate the entire team who helped us, but especially State Treasurer Ellsworth, our Bond Attorney, Stephanie J. Bonney of MSBT Law, Eric Heringer of Piper Sandler & Co., who made presentations to the council and kept us informed about current rates during a roller coaster of a year, and finally, Anna McCully of Zions Bank. These outstanding and knowledgeable professionals performed a great service to our utility customers”.
The IBBA is an independent public body created by the Idaho State Legislature in 2001. The program is an instrument of the State of Idaho within the Treasurer’s Office. For more information on the IBBA, how to apply for a loan, a copy of the Series 2020 A/B prospectus or recent audited financials of the IBBA, please visit our website.
* Please refer to the Savings by Borrower table below.
Page 7 of Summary of Sale:
Entire Summary of Sale report available at https://sto.idaho.gov/Debt-Management/Idaho-Bond-Bank-Authority-IBBA.
IDAHO BOND BANK AUTHORITY BOARD MEMBERS
Julie A. Ellsworth, Chairman | Len Crosby, Governor Appointee | Dan Johnson, Idaho Senator Seth Grigg, Governor Appointee | John Vander Woude, Idaho Representative