DELTA TOWNSHIP, MI – The Charter Township of Delta is proud to announce a refinancing of general obligation bonds for the Delta Township District Library. The refunding of bonds will save the Library nearly $1.4 million over the next 20 years. Supervisor Kenneth Fletcher stated that the “refinancing reinforces Delta Township’s history of strong financial management.” Fletcher added, “the savings will be a great benefit to anyone who enjoys the Delta Township District Library.”
S&P Global Ratings, acting through Standard and Poor’s Financial Services LLC (“S&P”), evaluated the Township’s credit quality assigning the Township an outstanding rating of “AA+” with a stable outlook. The rating agency cited the Township’s strong economy, strong management, good financial policies and practices, strong budgetary performance, very strong budgetary flexibility, very strong liquidity and strong institutional framework in their rationale for rating the Township at this level.
“Delta’s financial outlook shows our commitment to responsible fiscal policies and practices,” said Delta Township Treasurer Howard Pizzo. “Quite simply, being proactive has helped us take advantage of this opportunity.”
The Township’s financing was conducted by the Michigan investment banking office of Stifel, Nicolaus & Company, Incorporated; the municipal advising firm, Bendzinski & Co.; and Miller, Canfield, Paddock and Stone, P.L.C., the law firm serving as bond counsel. The Township’s 2016 General Obligation Limited Tax Library Refunding Bonds were sold at a true interest cost of 2.56% reaching final maturity in 2037 (a repayment term of approximately 21 years) in the amount of $5,625,000. The Bonds are being issued for the purpose of refunding all or a portion of the Township’s outstanding General Obligation Limited Tax Library Bonds, Series 2007, and paying the costs of issuing the Bonds. The bonds reduce the Township’s interest expense of $1,349,300 over the 21-year lifetime of the bonds.
Jeff Zylstra, Managing Director with Stifel, Nicolaus & Company, Incorporated states, “Delta Township’s Bonds were very well received by the bond market. We were able to take advantage of current low-interest rates and low supply of Michigan tax-free bonds to meet the financial goals of the Township and the Library.”
Delta Township exists to provide superior services to the community while meeting the challenges and opportunities of the 21st century.