Mayor Ben Blake today announced that the City will capture $1.57 million in taxpayer savings by refinancing $14 million in bonds on a day when interest rates for municipal bonds were at all-time lows.
This initiative is the latest in a series of cost cutting measures taken-up over that past year to make Milford government more cost effective. In addition to the tax relief found in the present bond refunding, and over $900,000 realized by a prior refunding just 10 months ago, Blake has also pursued savings by aggressively renegotiating health care and energy costs.
"I am pleased to announce today the city will be refinancing $14 million in bonds, securing a very favorable 1.53 percent net interest rate on bonds which were originally financed at an average rate of 3.6 percent. The sale will yielded a total savings of $1,577,830, or 10.29 percent of the initial obligation. We were able to take advantage of existing market conditions to seize the opportunity and return $1.57 million to the taxpayers of Milford," Blake said.
“Today’s announcement is the result of outstanding planning, management and timing and could not have happened without the help of Matthew Spoerndle, Director of Phoenix Advisors, LLC and Peter Erodici, Milford's Director of Finance." Blake said.
Blake also cited Milford's outstanding bond rating as a key to this transaction. "Milford would not be able to secure these rates if we did not maintain excellent bond ratings. The three rating agencies, Moody’s, Standard & Poor’s and Fitch – recently gave our city high marks for prudent fiscal practices amid the downturn in the real estate market. All three affirmed the city’s bond ratings (Aa1 for Moody’s, AA+ for S&P and Fitch)".