Fairfield refunds bonds, will save $1.7 million over 12 years

Brenda Kupchick

Brenda Kupchick

Contributed photo

FAIRFIELD — The Town stands to save about $1.7 million in interest costs over the next dozen years after it refinanced $18.86 million in bonds with a new lower interest rate.

“This is very good news for taxpayers in the town of Fairfield,” said First Selectwoman Brenda Kupchick in a press release. “We were able to take advantage of the low interest rate environment and refinance bonds for significant budgetary savings moving

Kupchick said the town received “solid” reviews from Moody’s Investors Service, one of the three major Wall Street Rating Agency firms.

Kupchick said the town received 12 bids on the bonds, with Robert Baird and Co. submitting the winning bid, beating out Janney Montgomery Scott, Mesirow Financial, Roosevelt and Cross and JP Morgan, among others.

The first selectwoman said the interest rates bid on the bonds ranged from a winning bid of 1.72 percent, to a high bid of 1.85 percent.

The refinanced bonds were originally issued in 2012 and were used to finance a number of capital projects including Fairfield Woods Middle School, Sherman school, Fairfield Warde High School and other public improvement projects, the press release said.

According to the release, Matthew Spoerndle, senior managing director of Phoenix Advisors and Fairfield’s municipal adviser, called the results exceptional given recent stock market volatility.

“It’s very rare to receive this many bids on a bond sale, and for the town to save even more than we had anticipated before the market collapse, this is amazing,” he said.

The release said Moody’s reaffirmed Fairfield’s AAA bond rating, the highest rating given. It said Moody’s referenced the town’s “large and wealthy tax base” and “solid and consistent fiscal position.”

For more information on the bond refunding, contact Spoerndle at mspoerndle@muniadvisors.com or call 203-878-4945.