GEORGETOWN, Del., Dec. 6, 2005 – Sussex County Finance Director David B. Baker announced Tuesday, Dec. 6, 2005, that thanks to lower interest rates and a favorable showing in a recent bond sale, the county will save $2.2 million in interest charges over the next 20 years.

The savings come as a result of the Nov. 29, 2005, sale of $18.5 million in low-interest, tax-exempt bonds. The bonds were sold to pay off an older loan for the construction of the West Rehoboth sewer project a decade ago.

That 1995 loan was for $20.8 million to be paid back at a rate of 5.5 percent over a 30-year-period. The new bonds are a loan that will be paid back over a 20-year period, but at a much lower rate of 4.3 percent.

The difference will result in a savings of $2.2 million for users of the West Rehoboth system.

“We’ll be able to use that money, the savings, for major maintenance and repair costs, which would have been passed on to the consumer,” Baker said. “This will enable us to maintain affordable rates, while still delivering an environmentally essential service.”

Wachovia Bank purchased all of the bonds, one of five underwriting groups bidding on the sale. The bonds will be marketed to clients and other investors, who can purchase them as investments.

Those investors, by purchasing the bonds, essentially lend the county the $18.5 million it needs to pay off the current debt. Those purchasing the bonds will not have to pay federal or Delaware income tax on the interest income.

“This is just another example of county government trying to save the end users some extra money by taking a few extra steps,” said Council President Finley B. Jones Jr. of Greenwood. “I applaud County Administrator Bob Stickels and Finance Director David Baker for their hard work on behalf of the sewer system users and the people of Sussex County.”

The bonds will be insured by the MBIA Insurance Corp., and have been given a AAA stability rating, the highest rating possible.