Over the next nine years, the Town of Westport will enjoy savings of almost $582,000 in debt service costs, Finance Director John Kondub announced Friday.
On Thursday, the town completed the sale of $13.3 million in general obligation refunding bonds rated Aaa by Moody's Investor Service. This rating means the issuer has an extremely strong capability to meet its financial commitments.
Last month, the Representative Town Meeting gave Kondub approval to refund up to $30 million in bonds.
"With the change in the capital markets over the preceding two weeks, it became economically feasible to bring only the $13.3 million sale to market, down from the originally planned amount of $20.1 million," Kondub said.
The refunding was backed by Piper Jaffray & Company at an interest cost of 2.27 percent and approved by the Board of Selectmen/Bond Committee at a special meeting.
More than $12 million remains eligible to be refunded and $16 million is available on the resolution authority approved by the RTM.
"Our staff will continue to monitor the capital markets in expectation of having a second refunding issue prior to this year-end," he said.
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