Assistant Finance Director McGowan says town's $35M GO bond sale drew 24 bids and secured a 3.07% true interest cost

Assistant Finance Director McGowan briefed the committee on April 13 about the recent general obligation bond sale the town completed after a council-authorized ordinance in December. McGowan said the sale was competitive and drew 24 bids; SWBC Investment Services (San Antonio, Texas) submitted the winning bid with a true interest cost of about 3.07%.

McGowan said the town had sought ratings from the three major rating agencies — Moody's, S&P and Fitch — and that each affirmed the town's credit strength with AAA-level assessments. He said the AAA ratings and tax-exempt status reduced the borrowing cost and that the winning bid was materially lower than many others in the bid list.

McGowan walked the committee through the repayment structure: the issue included an unusually early first maturity (June 1) and a front-loaded principal schedule that uses an available debt-service fund balance (about $14.3 million) to make a large payment this June, leaving a modest balance afterward. He said the town's model assumes a 5.1-mill debt-service rate going forward and noted South Carolina law limits municipal GEO debt to 8% of assessed value absent a referendum.

McGowan thanked bond counsel, the financial advisor, and the finance team for the competitive result and said the outcome preserves capacity to issue additional debt after 2028 if the town chooses to do so. "We received 24 bids, which... was a record," he said, and added the winning firm's true interest cost at approximately 3.07% provides savings to taxpayers compared with higher-priced bids.

Committee members praised the town's financial stewardship and asked no further questions. McGowan said staff will provide more detailed exhibits in future materials if members want to see ratio analysis or alternative repayment schedules.