Hamden Poised to Save Over $1 Million Through Refinance of $18m of Bonds
Expected Interest Rate to be Reduced from 4.20% to 2.50%
Hamden, CT - Mayor Curt Balzano Leng and Finance Director Scott D. Jackson are very pleased to report that the Hamden Legislative Council, at the meeting of May 17th, authorized the Administration to proceed with the refinancing of approximately $18 million of outstanding debt currently held by the Town. The proposal approved by the Legislative Council was a straightforward refinancing, and did not involve the restructuring of any terms of the affected bonds, the borrowing of new funds, or the postponement of current payments. As a result the Town expects an interest rate reduction from 4.20% to 2.50%, which is estimated to provide an overall savings of approximately $1.15million over the next several years, the majority of which will be realized in 2023. Final results will be determined on the sale date of the refunding bonds.
Commenting, Mayor Curt Balzano Leng said, “This is responsible municipal financial management at work. Hamden saw a favorable opportunity to reduce our interest rates, and we took it. That right there is excellent work by the Hamden Finance Department and Director Jackson. I thank the Legislative Council for recognizing the benefits of this refinancing and for authorizing the Administration to proceed. This is the right move for Hamden, for our financial future, and for our residents.”
Residents may review the full details of the approved proposal by visiting www.hamden.com/AgendaCenter and navigating to the corresponding May agendas of the Legislative Council. For further questions or comment, please contact the Office of the Mayor at 203-287-7100.