Town of New Milford's financial outlook rated strong

NEW MILFORD — The Town of New Milford’s strong financial outlook has enabled it to finance major town projects through borrowing at very low interest rates.

On July 13, the town went to the capital markets to secure $9,300,000 in bond anticipation notes (BAN) to finance roads, bridges and the final phase of the public library renovation as well as converting $9 million in BANS to permanent bonds used for roads, roofs and the initial phase of the library project, an announcement from Town Hall said last week.

The town underwent a ratings review with Moody’s Analytics in which the town’s credit rating of Aa1 was upheld and the BAN rating of MIG 1, the highest ratings for BANS, was bestowed on New Milford. Moody’s cited: “Strong liquidity and reserves, healthy financial profile and strong resident wealth” as key factors in supporting those ratings.

As a result of the town’s strong financial position and management practices, the town was rewarded with a borrowing rate of 0.149% on the $9,300,000 in BANS with five firms bidding on these notes, the announcement said. The winning bid went to Piper Sandler. Regarding the $9 million in bonds, there were seven participants with the winning bid going to Janney Montgomery Scott at 1.60 percent for a 20-year maturity. This rate was 20 basis point lower than the Town of Fairfield at 1.8 percent and equivalent to a 1.58 percent rate obtained by Bethel, both of whom are AAA rated communities, the announcement said.

“This is a testament to the strong financial position and management of the Town and a direct benefit to the Taxpayers in the form of extremely low interest costs again saving the taxpayers tens of thousands in expenses,” the announcement said.