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Hilton Head Refinances Bonds, Saves $3 Million

The Town of Hilton Head Island issued $27.885 million GO Refunding Bonds on Sept. 1 to achieve savings through lower interest rates. The new bonds replaced 2005, 2008 and 2010 bonds totaling $28.440 million. The town will realize $3,000,322 in savings over the life of the bonds. Recently, the town underwent a rigorous bond ratings process; all three municipal bond rating agencies affirmed the town's strong ratings citing strong financial practices leading to ample financial reserves and high liquidity as well as a very strong economy.

The town’s ratings are Moody's: Aaa, Fitch: AA+, Standard & Poor's: Aa+. The town’s history of financial responsibility was central to the strong ratings. The savings from refunding the three bond issues will be used to repay the new bonds faster. The town is funding an aggressive Capital Improvements Plan without increasing millage rates for the Debt Service Fund. Residents and tourists will benefit from new projects without a tax increase. The Capital Improvements Plan includes expansion of the Island Rec Center, island-wide beach renourishment, Coligny/Pope Initiative Area Improvements, and a number of other items specified in the town’s fiscal year 2017 budget.