Calling and re-issuing bonds saves town $1.9 m.

Treasurer/Collector Georgia Colivas reported to the selectmen at last night’s Board of Selectmen meeting that her efforts to call and re-issue about $10.225 m. in town bonds will save the town $1.9 m. over the life of the bonds.

The municipal bonds had provisions that prevent them being called for the first ten years, and the town has passed that limit.  Another set of town bonds will pass that threshold this fall, and if rates have not changed, will also be re-issued, saving the town even more monies on the town debt.

The interest rates on the bonds that were re-issued went down from 4.4 – 4.6% to 1.265%.  The bonds were purchased by TD Securities.

The actual issue savings had the town substantially exceeding the preliminary pre-issue estimates that the town would save $1.7 m. on the current re-issue.  Ms. Colivas reported that the recent Moody’s ratings confirmed the town as rated Aa1, allowing the town to benefit from lower interest rates.  The town is reaping the benefits from years of being well run and generally parsimonious in its spending.

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