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The transaction, which was underwritten by Raymond James, was priced on Aug. 2. The refunded bonds were originally issued in 2010 and 2013. The city regularly monitors the municipal bond market to determine if market conditions present an opportunity to reduce interest expense.
The total savings over the 12-year life of this issue is $886,206. The city will realize an average annual savings in its debt service payments of $83,255 in each of the next 10 years and $26,826 in each of the remaining two years, according to Rilling.
The total savings based on present value is $833,619. Moody's Investors Service provided a Triple-A rating to help facilitate the refinancing citing, "no material developments since our last report on June 22, 2016" when it provided the same Triple-A rating for the city's annual issue of "new money" bonds to fund capital expenditures.
Rilling applauded the initiative to save Norwalk taxpayer's money, and was pleased with the results of the refunding transaction.
"My administration seeks efficiencies in the city's operations and financial transactions whenever and wherever possible to save Norwalk taxpayers money," he said. "I am pleased that we have achieved this $886,206 savings for the taxpayers of the city of Norwalk over the coming years as a result of this refinancing transaction."
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