Debt Refinancing To Yield More Savings than Expected
By Kim Siebert MacPhail
Town Finance Director and Treasurer Victor Garofalo brought good news to the Selectmen on Monday night when he announced that the most recent effort to re-bond eligible debt will yield $601,566.90 in savings for the Town, $178,693.25 more than anticipated. When Garofalo first presented refinancing possibilities to the Selectmen in December, the estimated savings were $422,873.65. Since then, favorable interest rates, coupled with vigorous competition among nine investment institutions to acquire Bedford’s Triple A-rated bonds, has resulted in a better position for the Town.
The bond sale was awarded to Ross, Sinclair & Associates and the new loan will see a net interest rate of 1.28%. The full range of interest rates was 1.28% to 1.404% among the nine competitors hoping to acquire the bonds.
Bonded Town projects that were eligible in this round of refinancing include the construction of the DPW building on Great Road, land acquisition on Middlesex Turnpike, the Town Center building expansion and renovation, and water main and sewer system work.
Responding enthusiastically to Garofalo’s news about the loan interest savings and to Standard and Poor’s reaffirmation of Bedford’s Triple A bond rating, Selectmen Chair Cathy Cordes said, “This is about as good as it gets.”