From the Town: Debt Refinance Will Save Farmington $700,000

The Town of Farmington is pleased to announce that it was able to refinance $4.84 million of its General Obligation Bonds at a lower interest rate. The refinance will save the Town $739,510.24 over the life of the bonds, including over $105,000 this coming fiscal year.

In large part made possible by Farmington’s Aaa credit rating, the highest credit rating a municipality can receive, Town Finance Director Joe Swetcky was able to sell $4,840,000 in General Obligation Refunding Bonds at an overall savings of 12 percent.

Since 2009, the Town of Farmington’s bond refinancing program has refunded almost $40 million of the Town’s outstanding debt, saving taxpayers over $2.5 million in interest expenses. This program has also reduced the Town’s long-term debt balance by almost $20 million.

Jeff Hogan, Farmington Town Council Chairman, stated that “Sound financial management and best practices has allowed the Town of Farmington to take advantage of favorable interest rates which has led to tremendous savings for the taxpayers of Farmington. These saving have been redirected to ensure and maintain quality services in these hard economic times while preserving one of the lowest tax rates in the region.”