FAIR HAVEN BOND SALE YIELDS SAVINGS

Money (half column)
Fair Haven’s first-ever trip to the Wall Street debt markets yesterday resulted in a bond sale at a better-than-expected interest rate, borough officials tell the Asbury Park Press.

From the Press:

The 10-year bonds sold for an interest rate of 3.08 percent, much lower than rates in the mid-3 percent range that officials expected to get, which will save taxpayers $40,000 annually, said Mayor Michael Halfacre. Last month, the borough received a Double A rating from Standard & Poor’s, making it one of 26 towns in the state to be rated Double or Triple A.

“The difference is about $40,000 a year. It’s the type of thing we’re happy about,” Halfacre said.

Council President Jonathan Peters said that savings will reoccur every year until the bonds are paid off. Officials expected an interest rate of 3.25 to 3.4 percent.

“Given the fiscal distress out there, it’s a pretty good rate of return,” said Peters, who chairs the finance committee. “This is the benefit of more fiscal prudence for the taxpayer.

Borough officials consolidated old short-term debt into one 10-year sale. The bonds were bought by RW Baird, which has offices in Red Bank, Halfacre said.

The sale refinanced $6.3 million in short-term borrowings, redbankgreen reported last week.

Email this story