Seymour refinanced its debt and will see roughly $448,000 in savings over six years, First Selectman Kurt Miller announced.
The savings come because Standard and Poor’s upgraded the town’s credit rating in April. That move means Seymour residents were able to get a lower interest rate connected to almost $6 million in debt incurred in 2004 for school construction, sewer work, and other construction projects.
Miller’s office announced the savings Tuesday.
“This was a team effort between my office, the Board of Finance, the Board of Selectmen, all of whom bought into this idea of carefully planning ahead,” Miller said. “You can’t forget our professional staff here in Town Hall. Our finance director, our director of operations, they all played a part.”
The town also thanked consultants William Blair & Co. and Day Pitney, LLP for guiding the refinancing.
Financial planning has been Miller’s top priority since taking office in 2011. To that end, the town established a Ten Year Strategic Planning Committee, a group looking to make sound fiscal practices official policy in Seymour.
Miller says certain aspects of financial management, such as how much money the town keeps in its fund balance, and the town’s debt ratio, shouldn’t change based on who’s in charge. Stability is key, Miller said.
Miller’s also hyping the savings because it looks like the town will be asking voters in November for permission to borrow $5 million to help repair Seymour’s long neglected roads. Miller says the borrowing, if approved, will not raise taxes.
Seymour’s roads need an estimated $12 million in work, for which the town is planning.
“Bond refinancing isn’t sexy. It isn’t fun. But we’re saving taxpayers money,” Miller said. “This is going to give us tremendous financial flexibility over the next six years,” Miller said.
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