Oxford Debt Refinancing Saves $725k

From the Town of Oxford:

October 11 2019

First Selectman George Temple happily announced today that the Town of Oxford had a savings of $725,234.72 on the refinancing of a portion of its outstanding debt. The refinancing took place yesterday October 9, 2019.

Mr. Temple stated, “I am very pleased with the results as the refinancing represents a saving of over $158.00 for every household in Town. I would like to thank the Finance Department for their constant vigilance of the financial well-being of the town.”

The savings will begin on January 1, 2020 and continue on an annual basis until 2029. In this year’s operating budget, the savings will be $143,169.71. The majority of the debt that was refinanced was for the construction of Oxford High School.

The team that planned and executed the refinancing was First Selectman George Temple, Treasurer Vincent Palutis and Finance Director James Hliva. The Town was also assisted by Dennis Dix of Dixworks LLC and Joseph Fasi of the Law Firm of Fasi Law.

The bonds were purchased by Piper Jaffray and Company. In speaking with Piper on Wednesday they stated that the rates Oxford received were near historic lows. The refunding bonds have a true interest cost of just 1.69%

The refinancing, which is also called a refunding, is comparable to residents refinancing their home mortgage, but is done in the Bond market versus homeowner going to their personal lending institutions.

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This press release was produced by the Town of Oxford. The views expressed here are the author’s own.