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Fairfield’s Bond Committee approved the sale of more than $20 million in bond anticipation notes, with an interest rate of 0.171 percent. The level was “a winning rate that was virtually the same as last year’s,” said Matthew Spoerndle of Phoenix Advisors, the town’s financial adviser.
“The town is very pleased with the successful results of this sale,” First Selectman Michael Tetreau said in a press release. “Funding town projects at these low rates saves Fairfield taxpayers a significant amount of money over the long term.”
The sale came just days after Standard & Poor's upheld Fairfield’s AAA credit rating, the highest possible rating for a municipality. The credit agency also maintained that Fairfield’s financial outlook is “stable.”
Among the reasons for the high rating are Fairfield’s “large, affluent property tax base, supported by a sizable commercial and industrial presence” and its “very strong wealth and household incomes,” the report says. It also cites the town’s “experienced and good financial management” and “moderate and manageable debt burden.”
“S&P continues to recognize the Town’s strong and prudent fiscal management, solid tax base and active economic development,” Spoerndle said Wednesday. This year, about 10 percent of Fairfield’s spending will go toward debt repayments, totaling nearly $27.6 million. Lower interest rates would help to bring that number down in the future if they continue.
Fairfield will use the bond anticipation notes sold Thursday to help fund large-scale projects around town. The projects currently underway include PCB removal at Osborn Hill School, expansions to Riverfield School and Fairfield Ludlowe High School and roof work at Fairfield Warde High School and the Fairfield Woods Branch Library.
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