HONESDALE, PA — Wayne County officials came out of the July 23 commissioners’ meeting with a glowing report on the county’s financial position and a deal to save $400,000 in county debt service over the next 10 years.

Anyone who listens to radio or watches TV has heard repeated offerings of home mortgage savings through refinance at lower interest rates. Essentially, that’s what Wayne County is doing in refinancing it $13.47 million, 2010 bond issue.

The new 2015 bond issue is a buy-back of the last 10 years of the original 25-year bond at a net interest cost of 2.7%, which is expected to realize debt savings of $414,000 over the remaining life of the bond. That’s more than $100,000 over the original target savings, according managing partner Les Bear, of the PA Public Financing Group of Robert W. Baird Inc., which is underwriting the bond.

Bear emphasized the new bond does not extend the debt, and only reduces the interest cost.

That lower rate was largely due to an exceptionally positive review of county finances provided by the rating agency, Standard & Poors. S&P rated Wayne’s bonds at AA- .

“I cannot commend everyone in this room enough. This is not a typical report…” Bear said, pointing out the report’s use of repeatedly stronger, positive language than ordinarily is used.

Bear ticked off points in the report, including Wayne budgeting policy, which S&P characterized as “strong.”

“They never use that word,” Bear said.

Other points—budget flexibility, liquidity, debt and liability—were rated as strong or very strong. S&P was also impressed with Wayne’s cash payment of 107% of its state pension program obligation in 2014, terming that “very unusual.”

The yield on the new bond drops from 3% to .3%, and the interest rate fell to 3.15% from 3.8%.

Bear said the resulting AA- rating was very helpful in marketing the bonds, and will also help Wayne Memorial Hospital. The AA- rating also eliminated the need for bond insurance, saving an additional $32,000.

While last week’s ceremonies finalized county’s role, the overall bond deal is scheduled for a formal August 27 closing in Honesdale.

The new bond issue is projected to save Wayne $414,500 over the 10-year life of the bonds, $393,600 of which will be realized this year.

After the meeting, Bear said he was very pleased to have been able to provide such a glowing presentation. “I don’t get the opportunity very often. It was unique.”