With favorable market conditions late last week, the town of Cheshire refinanced $5.6 million in bonds at a lower interest rate, providing a savings of more than $360,000.
The bond refunding reduced the interest rate on debt from 3.95% to a average of 2.12% according to a statement from the town. The rate is the lowest municipal interest rate in 45 years, said Matthew Spoerndle of Phoenix Advisors, the town's financial advisor.
“Town officials made this issue a priority," said Spoerndle in the statement. “The end result is we were able to save taxpayers money.”
A review of the town's financial strength, according to Marketwatch included information about a "significant expansion (that) has been reported of existing properties along with some new development of unused property."
One of the key items, acccording to the Marketwatch article, is a nearly finalized agreeement for the former Pratt & Whitney site on Knotter Drive. The complex covers more than 293,000 square feet. The factory site, which closed in August 2011, was approved by the legislature as a "Defense (Enterprise) Zone" which will provide tax abatements for the company which locates there.
Additional information on the town's bond refinancing package can be found at Fitch Ratings.