By re-funding, or refinancing, up to $30 million in town bonds, Finance Director John Kondub said Westport could save as much as $850,000 over the next 15 years. That's why he asked the Representative Town Meeting at a special hearing Tuesday night to authorize the re-funding of bonds issued in 2004 and 2006.
"It's like refinancing a mortgage," Kondub told the RTM. "The forces in the market have seemed to gel. And at this point, it seems we may be able save, over a life of 15 years outstanding on the bonds we want to recall, close to $800,000 in financing costs."
The town, Kondub said, has authorized the re-funding or refinancing of bonds five times in the past, most recently last year, saving more than $788,000.
"This year, we're looking to do maybe a little better: $800,000 to $850,000, somewhere in that area," he said.
Michael Rea, an RTM member and chairman of the RTM Finance Committee, also spoke in favor of re-funding the bonds, saying the finance committee backs the idea.
When it came time to vote, the RTM approved the resolution unanimously.
With the green light to go ahead and refinance bonds, Kondub said Moody's Investors Service would begin reviewing the town's credit rating next week. The proposed date of sale is scheduled for Nov. 4.
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