First Selectman's Report - 08/08/2011

YOU MAY REMEMBER THAT THE TOWN STARTED LOOKING INTO A REFUNDING OF ITS SERIES 2003 GENERAL OBLIGATION BONDS BACK IN MAY.  SINCE WE STARTED THAT PROCESS, INTEREST RATES HAVE DROPPED TO AN ALL-TIME LOW AND MOODY’S REAFFIRMED OUR TRIPLE A RATING – EVEN AT A TIME WHEN GOVERNMENT FINANCES ARE UNDER REAL SCRUTINY.

I’M PLEASED TO REPORT THAT OUR BOND REFUNDING INITIATIVE WAS A HUGE SUCCESS – IT IS GOING TO SAVE THE TOWN OVER $387,000, OR $55,396 PER YEAR FOR THE NEXT SEVEN YEARS.  ON AUGUST 4, THE TOWN ISSUED $5 MILLION FOR THE ADVANCE REFUNDING.  WHEN ALL THE BIDS WERE IN, THE TOWN WAS ABLE TO REALIZE A TRUE INTEREST COST OF 1.30% - LITERALLY THE LOWEST INTEREST RATE CHARGED TO THE TOWN SINCE AT LEAST 2003.

MANY FACTORS CAME INTO PLAY IN THIS SUCCESS:  THE TOWN’S BOARDS TOOK THOUGHTFUL AND TIMELY ACTION; OUR FINANCE DEPARTMENT DID AN EXCELLENT JOB WORKING WITH OUR FINANCIAL ADVISORS TO PREPARE THE REFINANCING, AND OUR HISTORICALLY CAREFUL APPROACH TO FINANCING WAS REWARDED.  AS MOODY’S NOTED, OUR “Aaa RATING REFLECTS THE TOWN’S HISTORY OF SOUND FISCAL MANAGEMENT, STABLE GRAND LIST, STRONG WEALTH INDICES AND MANAGEABLE DEBT BURDEN.”

I WOULD LIKE TO THANK EVERYONE INVOLVED IN SEEING THIS PROJECT THROUGH TO CONCLUSION.  WE CONTINUE TO STRUGGLE WITH TOUGH ECONOMIC CHALLENGES, AND SAVINGS OF THIS MAGNITUDE ARE CERTAINLY WELCOME.