Town of Simsbury Saves $387,425 With Bond Refunding

On August 4, 2011, the Town of Simsbury issued $5 million for an advance refunding of its Series 2003 General Obligation Bonds in order to take advantage of all-time low interest rates to save money for the town.  

Based on the low bid, the town will save $387,425 net present value or approximately $55,396 annually for the next seven years. 

Prior to issuing the advance refunding, Moody’s reaffirmed Simsbury’s AAA rating noting that the “AAA rating reflects the town’s history of sound fiscal management, stable grand list, strong wealth indices and manageable debt burden.”

First Selectman Mary Glassman said the town first considered a refunding in May, 2011 after reviewing outstanding bonds and consulting with Public Financial Management, Inc., the town’s financial advisor. Since that time, municipal market rates have increased in the town’s favor. This is the first time the town has refunded its municipal bonds.

“This was a clear opportunity for the Town of Simsbury to be proactive in working to save money for the taxpayers of Simsbury,” said Glassman. “At a time when rating agencies are taking a hard look at government finances, the town’s sound fiscal management and its AAA rating are helping it to ease the burden on taxpayers. Present value savings of $387,425 is a clear win for the Town of Simsbury.”