Hamden Issues Bonds at Lowest Rate in Town History: Officials

HAMDEN, CT — Hamden has successfully issued $28.535 million in general obligation bonds for various town and school infrastructure investments and capital improvements, Mayor Curt Balzano Leng announced on Friday.

The projects were approved in previous years and utilized short-term financing for funding, prior to deciding the optimal time to go to the market for traditional longer-term capital financing.

The bonds were issued at the lowest borrowing rate in Hamden’s history, at least as far back as the town’s financial advisor could research, according to a press release.

The bonds will be repaid over the next 20 years and the True Interest Cost (TIC) is 3.02 percent.

“Consistent with the town’s debt policy, the new bonds will be repaid in equal installments over the next 20 years,” Director of Finance Salvatore DeCola said in a press release.

Read more from the press release below:

“Hamden’s A+ bond rating from Standard & Poor’s provided investors with a strong degree of security”, noted Barry Bernabe, the town’s financial advisor and Managing Director of Phoenix Advisors. He continued, “The town’s bonds were 5 times oversubscribed, which demonstrates very strong investor confidence in Hamden’s financial management.”

Leng said, “It is very rewarding to see our team's consistent commitment to improving the town's finances pay off in a very real and tangible way, resulting in lower borrowing costs to Hamden’s taxpayers. This historically low interest rate will allow the town to continue to invest in projects that improve the safety and quality of life for our residents, while at the same time mitigating Hamden’s debt burden. The market continues to show the town of Hamden that it has confidence in our financial management and practices.”