Milford Mayor Ben Blake has announced that the City will capture $893,536 in taxpayer savings by refinancing $16 million in bonds on a day when interest rates for municipal bonds were at record low levels, and subscriber demand for Milford bonds was high.
This initiative continues a series of cost cutting measures which help to make Milford government more cost effective. In addition to the tax relief found in the present bond refunding, the city realized savings of approximately $3.9 million in the last few years from four prior refunding issues.
“I am pleased to announce today the city will be refinancing $16 million in bonds, securing a very favorable 1.96 percent net interest rate on bonds which were originally financed at an average rate of 3.7 percent. The sale will yielded a total savings of $893,536, or 5.07 percent of the initial obligation. We were able to take advantage of existing market conditions to seize the opportunity and return $893,536to the taxpayers of Milford,” Blake said.
“This announcement is the result of outstanding planning, management and timing…” Blake said. “This is outstanding news for Milford. We will be able to use the savings to provide tax relief for upcoming budgets.”
Blake pointed out that in other parts of the country, agencies have downgraded bond ratings for cities or states that struggle to maintain obligations to retirees. Milford’s pension fund is fully funded, and the city has kept pace with requirements to fund retiree health care that is not seen everywhere.
Nice work, Ben!
Check out Ben’s office page on the City of Milford website here.