December 10, 2008 > Fremont fiscal policies pay off
Fremont fiscal policies pay off
In the October 22, 2008 edition of Tri-City Voice, Fremont Finance Director Harriet Commons and Finance Manager Don Dorman spoke about the attempted sale of Fremont Certificates of Participation (COP). At that time, due to a lack of market interest, these were repurchased by the city for future resale at favorable interest rates. (see www.tricityvoice.com and look in archives). TCV spoke with Ms. Commons to about the fate of the COPs.
TCV: Have the Fremont COPs been sold?
Commons: Yes and at very good rates. The market has been skittish and with a lack of good 'paper' ours became very attractive. Our COPs sold for very good rates. The fixed rate COPs sold at the end of September at an average coupon of 5.06 percent and the variable rate priced on November 12 at .75 percent. The variable rates have since reset at the same rate. The COPs are backed with a Letter of Credit from a bank with a good rating and investors have responded favorably. This will definitely help our bottom line since we will now be paying much lower interest rates.