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Assistant Finance Director McGowan reports competitive $35M G.O. bond sale; winning bid at 3.07%

Administrative Committee · April 7, 2026

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Summary

Assistant Finance Director McGowan told the Administrative Committee the town’s competitive sale for up to $35 million in general-obligation bonds drew a record 24 bids; SWBC Investment Services won the deal with a true-interest cost of about 3.069% and the town retained AAA ratings, enabling lower borrowing costs.

Assistant Finance Director McGowan briefed the Administrative Committee on the results of the town’s competitive sale of general-obligation bonds, explaining the issue (up to $35,000,000, repayable over roughly 15 years) will fund capital projects including a fire-rescue headquarters and emergency operations center, land acquisition for conservation and issuance costs.

McGowan said the town received 24 bids in the competitive sale; the winning bid came from SWBC Investment Services of San Antonio with a true-interest cost (TIC) of 3.069% (rounded to 3.07). He noted the transaction was tax-exempt—typical for municipal debt—and that the town’s AAA ratings from Moody’s, S&P and Fitch translated into lower borrowing costs. McGowan thanked the town’s financial advisor, bond counsel and paying agent and said the issue demonstrated strong investor demand.

He explained the repayment structure is front-loaded, with a significant principal payment expected on June 1 that will reduce the debt-service fund balance materially; modeling assumes a 5.1 mills debt-service rate and a conservative 2% growth in the value of a mill. McGowan reminded the committee that South Carolina restricts non-referendum GEO debt to 8% of assessed value (a referendum option exists to exceed that limit) and said the town retains capacity to issue additional debt while remaining within AAA metrics.

Committee members praised the town’s fiscal stewardship and the strong market reception. McGowan said more detailed debt-service schedules and model exhibits are available for committee review as needed.