Lauds town's 'creative' financial savings
Published 3:55 pm, Wednesday, July 31, 2013
To the Editor:
About five years ago, New Milford's Water Pollution Control Authority embarked on a vital expansion of the West Street sewer plant.
Today, the completed, state-of-the-art plant is the centerpiece of the town's infrastructure.
The approximate $30 million plant expansion was funded by a 20 percent state grant and the balance financed with a 2 percent loan from the state's Clean Water Fund.
However, during the construction phase of the project, Mayor Pat Murphy and finance director Ray Jankowski decided to issue short-term bonds, called bond anticipation notes, because that borrowing would be at considerably less than 1 percent interest, much less than the Clean Water Fund's 2 percent.
That difference in interest saved taxpayers nearly $1 million during the construction phase of the project.
The town was only able to achieve these savings because of its strong financial condition and excellent credit rating.
The town's bond counsel, Joe Fazzi, wrote New Milford was the only town in Connecticut able to use this creative financing to achieve these enormous interest savings.
We often hear how our town leaders work hard to save taxpayer dollars and this is solid proof it really does happen.
Congratulations to Mayor Murphy and finance director Ray Jankowski for this great success.