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Town refinances bonds....We will save $820,000 over life of bonds. It is very difficult to receive a Aaa/AAA bond rating --Rating saves taxpayers significant dollars each year in borrowing costs
Greenburgh receives Aaa/AAA bond rating again from Moody's & S & P....
Greenburgh refinances bonds and saves $820,000 over life of bonds
Moody's and Standard & Poor's gave the town of Greenburgh their highest rating---Aaa/AAA. S & P said that the "town's general creditworthiness is characterized by stable and strong financial performance and the maintenance of very strong reserves, supported by very strong economic metrics." "In addition, we believe Greenburgh's strong management policies and practices have historically buoyed financial performance." Referring to the COVID-19 pandemic, S & P mentioned that in their "view town management effectively managed both revenue and expense impacts in the past year."
Moody's said our "financial position is strong but will see declines in fund balance as its more variable revenues were under collected during fiscal year 2020. The debt burden of the town is low." They mentioned that the town is in a "healthy financial position with very strong resident wealth and income levels in a sizable tax base." They indicate that the stable outlook reflects the expectation that the town will maintain its historically strong financial performance and that its tax base will remain large and wealthy."
FROM JANET MORLEY, VICE PRESIDENT OF CAPITAL MARKETS ADVISORS ABOUT OUR REFINANCING OF BONDS
The town also refinanced our bonds today. There were four competitive bids for the Towns $6.4million refunding bonds. Tax-exempt rates have been near historic lows of late and the Town was very prudent to take advantage of this opportune time. The refunding bonds, which have a 12 year maturity, sold for a True Interest Cost of 1.02%. The refunding results in the Town saving over $820,000 in net present value (NPV) savings over the life of the bonds. Such NPV savings are equal to over 11% of the principal amount of refunded bonds. As you know, industry and State Comptroller rule of thumb suggest that anything over 3% in NPV savings represent a worthwhile refunding, so the Towns 11% NPV savings are an exceptional result. And, keep in mind that these results are net of costs of issuance, result in no out-of-pocket expenses to the Town and do not extend any bond maturities. In the current fiscal year alone, the Town will save $148,618 in debt service payments.
Greenburgh Town Supervisor