Historic low: Wilton borrows $7.9 millon at "remarkable"rate
Wilton has never borrowed money for a lower rate than it achieved Tuesday at a $7.9 million bond offering at Town Hall.
"Wilton has done the best it's ever done; this is remarkable," said town Chief Financial Officer Sandy Dennies.
The municipal bonds, sold to FTN Financial Capital Markets of Memphis, Tenn., were auctioned down to a rate of 1.965% (true interest cost), over a 20-year period.
The latest commparable offering was Jan. 20, 2009, in which the town issued municipal bonds at a rate of 3.314%, more than 40% higher than this week's achievement.
The first payment will be made in September and will be incorporated as a line item in next year's budget.
The low cost comes largely as a result of Moodys Investment Service's recent reaffirmation of the town's Aaa rating.
According to a Moodys statement: "The Aaa rating reflects the town's sound financial position dictated by fiscal policies, strong management team, a large and affluent equalized net grand list and low debt levels."
Of the $7.9 million in proceeds, $3.3 million will go towards the townwide road restoration project, $695,000 towards a new fire engine, and $2.8 million to various school renovations, especially new roofing and auditorium work at Middlebrook School.