DelDOT Saves Taxpayers $32 Million

DelDOT Saves Taxpayers $32 Million as a Result of Successful Bond Refinancing and Budgeting Strategy

Dover -- The Department of Transportation was able to achieve a savings to taxpayers of nearly $32 million over 12 years, as result of last week's successful refinancing of maturing debt through a competitive bond sale, agency Secretary Shailen Bhatt announced today.

The competitive bond auction was held Thursday, April 4, after DelDOT's excellent credit ratings were reaffirmed by both Standard & Poor's and Moody's. S&P's rating of AA+ and Moody's rating of Aa2 of DelDOT's bonds are consistent with last year's ratings and are considered exceptional for a state transportation agency.

The rating agencies both gave DelDOT an outlook of "stable" based on its disciplined pay-as-you-go approach to capital spending and a new long-term debt reduction strategy. They noted the ratings were achieved against a backdrop of rising fuel prices which can negatively affect both gasoline tax receipts and toll revenues.

"As a result of the successful refinancing, we will achieve a debt service savings based on cash flow (2013-2024) of nearly $32 million over 12 years," Secretary Bhatt said. "Our debt service for FY13 was originally expected to be $124.8 million. We now anticipate this amount will be reduced by approximately $7 million. This reduction will allow DelDOT greater flexibility as we continue to reduce our debt service, while maintaining a robust capital program."