Want to know how Lancaster is investing their/your money? Read this article from Lancaster Online, I’m not an economic guru but eliminating these “swaps” from local government sounds like a good idea to me. Our elected officials should be looking at the long term ramifications not just the short term monetary benefit.

The Lancaster County commissioners and Manheim Township School Board are terminating more of their “swap” deals.

[...]

The decisions over the last month by the commissioners and township school board to unwind swaps came as questions are beginning to be raised about the wisdom of allowing local governments to put tax dollars into such complex investment tools.

State Auditor General Jack Wagner is starting an investigation in Bethlehem Area School District, which has lost about $57 million because of swaps. Wagner may recommend legislative changes as the result of the probe, according to the (Allentown) Morning Call.

[...]
Stuckey said. The refinancing also lowers the county’s percentage of variable-rate debt to about 10 percent of its total $244 million in bonds.

“By switching from variable-rate to fixed-rate debt and eliminating the outstanding swaps, the county is taking a more conservative approach to managing debt and will realize interest savings over the life of the bonds,” he said.

{ 0 comments }