Darien First Selectman Jayme Stevenson and Finance Director Kathleen Buch announced that the town got a good interest rate of 1.739% on a $3.135 million bond just issued to pay for various town projects.
The interest rate was kept lower than those of most other government bonds by the town’s Triple-A bond rating, just reaffirmed by Moody’s.
The bond will pay for the purchase of a property on Short Lane, a new police boat, a heating system for the Darien Public Schools district administration office at 35 Leroy Ave. and various paving projects.
Update, 4:28 p.m.:
The $3,150,000 finances these particular projects (quotations are from the bond Official Statement):
- Acquisition of 4 Short Lane — $1,925,000 (already paid through a note issued by the town which has been “rolled into” this bond, according to Buch) — “On Jan. 27, 2014, the RTM [Representative Town Meeting] adopted an appropriation […] for the purchase of real property and improvements at 4 Short Lane, as well as demolition and disposal costs and engineering, architectural and administrative, printing, legal and financing costs related to the project.”
- Various paving projects — $705,000 — On May 11, 2015, the RTM adopted several bonding appropriations […] $705,000 was for several parking lot paving projects for the town and Board of Education. The Board of Education parking lot projects are expected to be completed by the end of August 2015, while the town parking lot projects will be completed by the Spring 2016.”
- Police boat — $285,000 — “The project design is underway and the boat is expected to be operational by Spring 2016.”
- Heating system for school district headquarters — $220,000 — “expected to be installed by Fall 2015.”
The town has the option of paying off the part of the bond maturing at any point on or after Aug. 1, 2021. The last scheduled bond payment is on Aug. 1, 2025.
Update, 5:45 p.m.:
The Official Statement for the bond has further descriptions of the projects that will be financed with it (now added to the bullet points above).
The top of the first page of the “Official Statement” — a prospectus dated July 21 on the bond issue, which also includes information about the town, for the Aug. 4 bond.
Here’s the full news release issued by the town Monday afternoon:
Darien issues $3.1 million of top rated Aaa municipal bonds at low 1.739% interest rate.
Moody’s assigns highest rating to current issue and reaffirms Aaa rating on $70.8 million of outstanding town bonds.
The town of Darien announced a successful bond issuance of $3.1 million with Morgan Stanley & Co, LLC submitting the winning competitive bid. The fixed rate, municipal bonds have maturities ranging from two to ten years and a true interest cost of 1.739% including bond premiums.
Proceeds will be used to permanently finance the purchase of property on Short Lane as well as the purchase of a new Police boat, installation of an upgraded heating system at Board of Education Offices and a variety of paving projects.
In rating the bonds, Moody’s Investors Service stated that Darien has a “sound financial position supported by formal financial policies and long-term planning”. They also noted Darien’s strong underlying economy, sizable tax base and above-average wealth indicators.
Darien, they said, benefits from its proximity to New York City, Westchester and Fairfield County employment centers. The rating recognizes the town’s well managed financial position, conservative budgeting practices and satisfactory reserve levels. They also noted the Town’s low debt levels and manageable pension liabilities.
First Selectman, Jayme Stevenson also remarked that “It’s great that our taxpayers continue to benefit from Darien’s strong and healthy fiscal condition and a very favorable interest rate environment.”